The health insurance industry is going through many changes post-COVID-19. While regulators have introduced some new regulations with the aim of increasing insurance penetration, the industry is also looking to innovative products to meet different customer demands. The MD and CEO of ManipalCigna Health Insurance, in an interview with Business Today’s Prasun Sikdar, discusses how the health insurance industry is shaping up post-pandemic.
BT: IRDAI currently allows banks and the IMF to sell nine and six insurance policies, respectively. What do you think about that? Will banks embark on many of these partnerships?
Prasun Sikdal: The IRDAI Circular, which allows corporate agents to partner with nine insurers (the first three), allows for an open architecture framework. This is a huge boost for the insurance sector and insurance penetration, and a big step towards the goal of ‘insurance for all by 2047’. This allows customers to choose products from different options. This will also reduce the insurance gap between rural and urban populations, and this reform will be a huge boost, facilitating large-scale coverage across India. The bank has excellent geographical accessibility. By enabling the bank to partner with his nine insurers, customers in these regions will be able to choose affordable health insurance products, access quality care, and have long-term financial security. have the opportunity to provide.
Customers have trust and confidence when purchasing insurance policies from banks. Insurers need to be proactive in this channel to leverage bank customers, networks and infrastructure to enhance insurance. This reform will benefit banks and expand their current customer network as they will be able to cross-sell with other financial products. The challenge for the bank is to upgrade its digital and technology infrastructure to bring new insurers into the system from his three to his nine. Robust technical capabilities enable banks to tap into a wide range of customer segments and support insurance sales across India.
BT: Are more PE funds expected in the industry now? How have the rules changed since PE was also previously invested?
Prasun Sikdal: Yes, investments by PE funds are expected to bring more foreign investment into the country. Investing in private equity improves access to capital and encourages investment in the insurance sector.
Previously, PE investment guidelines prohibited direct investment in Indian insurance companies by PE funds and allowed investment only through special purpose vehicles up to a certain percentage of the insurance company’s paid-up capital. Under the regulation, which will be notified shortly, the above restrictions will be relaxed and investment limits for insurers’ PE funds will be increased. This is intended to allow investment flexibility and pave the way for IRDAI’s 2047 goal of ‘insurance for all’.
BT: What are some of the key amendments proposed in the insurance bill? What are your thoughts?
Prasun Sikdal: The proposed amendments to the Insurance Law will primarily enhance the financial security of policyholders, facilitate entry into the insurance market leading to economic growth and job creation, and increase the efficiency of the insurance industry. Open for business. The proposal also includes various measures such as opening registration to different classes and types of insurers with specific capital requirements, enabling newer distribution channels and providing efficient use of capital and resources. It is
We believe that the measures proposed in the Insurance Act and IRDA Act lay the foundation for a new era of the insurance sector, with consumer-centric reform, greater access and coverage to insurance, and ease of doing business. I believe it will make Furthermore, we believe these proposed changes will enhance our distribution model, foster innovation in the insurance industry and make the sector more attractive for investment.
BT: When it comes to health insurance, which product is the most popular?
Prasun Sikdal: The pandemic has made people realize the need for comprehensive health insurance plans that cover OPD costs as well as hospitalization. Rising medical costs associated with an increase in lifestyle-related diseases are placing a burden on out-of-pocket expenses.
Comprehensive health insurance products that provide better coverage, better management and better care are therefore needed. Customers are now asking for products that cover OPD. In addition, the number of life-impairing products is on the rise, including customers suffering from diabetes, hypertension, dyslipidemia, obesity and asthma. This is because a significant portion of the population is affected by one or more of the above conditions.
BT: What innovations will we see in health insurance products in the future?
Prasun Sikdal: Health insurers now offer specialty products focused on chronic conditions such as cancer, heart disease and diabetes, along with disease management programs. With a robust network to build a holistic ecosystem, his OPD product is another segment that serves most of the out-of-pocket expenses. In the future, there will be more health insurance products that meet the specialized needs of our customers.
BT: How can the health insurance industry be part of the Ayushman Bharat Digital Mission?
Prasun Sikdal: Ayushman Bharat Digital Mission (ABDM) aims to create the necessary framework to sustain the country’s integrated digital healthcare infrastructure. Bringing the different healthcare ecosystem stakeholders closer together through a digital highway.
The building blocks of ABDM are the Health ID, Health Professional Register (HPR), Health Facility Register, and the ABHA mobile app allows insurance companies to leverage HPR to create a network of qualified individuals, etc. , can design an improved and efficient healthcare ecosystem. A healthcare professional will enhance cashless services and her OPD or leverage the Health Facility Registry for an extensive database of all healthcare facilities across the country, private and public.
BT: What are some of the challenges for the health insurance industry?
Prasun Sikdal: Despite historically being a living benefit product, health insurance remains a push product. Also, high Covid claims experience is another major challenge facing the industry, impacting an insurer’s overall loss ratio.
Therefore, in order for health insurance to become a pull product, health insurance must be made compulsory for everyone, like automobile insurance. Having insurance is an essential part of achieving financial well-being and peace of mind. I strongly believe that the level of education and health of our people play an important role in shaping our country’s future and driving economic growth.
Additionally, it is very important to organize the OPD segment and allow payers, providers and patients to easily access this network. India needs to connect primary care centers, pharmacies and diagnostic labs with cashless insurance networks to bring it into the digital economy.
Unfortunately, India’s healthcare system today is underfunded and reliant on out-of-pocket costs. Therefore, to ease the burden of out-of-pocket expenses, we have recently launched cashless OPD coverage under ManipalCigna ProHealth Prime. This allows policyholders to cover the costs incurred with options of Rs 20,000, Rs 30,000 or Rs 50,000 per policy year.Outpatient expenses such as dental, ophthalmology, physical therapist consultation fees, prescription drugs, etc.
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