Page 15 - Insurance Times July 2024

April creates opportunities to launch cannot repudiate a claim without the pet Health Insurance Policy, launched
long-term products. "We are exploring approval of a Claims Review Commit- in 2008 and catering to individuals
the possibility of creating 10-year prod- tee. For settlement of claims, insurers above 60 years old. This product has
ucts. We have observed the success of must insurers and TPAs (third party not seen a price revision since its incep-
long-term health savings products in administrators) must collect docu- tion, according to Anand Roy, Manag-
South Africa. Currently, we can offer ments from hospitals and not call for ing Director and CEO of Star Health
discounts. We are considering provid- them from the insured. Policyholders Insurance. Also, the Young Star Health
ing additional value-added services re- with multiple health insurance policies Policy, aimed at individuals up to 40
lated to health and health-related ser- can select the policy under which they years old, will undergo a price in-
vices that we can cross-sell to our cus- claim the admissible amount. The pri- crease.
tomers," said Roy. mary insurer will coordinate the settle- In the fiscal year 2023-24, Star Health
ment of the balance amount from posted an 18 per cent increase in gross
IRDAI sets 3-hour limit to other insurers. premiums, reaching Rs 15,250 crore.
settle health claims The new rules allow insurers to reward The combined ratio, which measures

IRDAI has brought in several reforms policyholders with no claims during the the company's underwriting profitabil-
policy period by offering either an in- ity, stood at 96.7 per cent . The com-
in health covers aimed at improving
service standards for policyholders. The creased sum insured or discounted pre- pany achieved an underwriting profit
new norms will require insurers to ap- mium amounts. of Rs 90 crore.
prove cashless claims within an hour Looking ahead, Star Health is target-
and provide final authorisation for dis- Star Health & Allied Insur- ing to grow its gross written premium
charge from a hospital within three ance plans 15% price hike (GWP) by 18-20 per cent to Rs 18,000
hours. crore - Rs 18,500 crore for the current
for two products
Insurers will also need to provide a Star Health & Allied Insurance, a fiscal year. By focusing on reducing
one-month grace period for annual standalone health insurer based in operating expenses and improving the
renewal of health policies and protect Chennai, is considering a price increase claims ratio, the insurer expects to
benefits under policies renewed within of up to 15 per cent this year for two improve its combined ratio by 100 ba-
that period. sis points to 95.5 per cent. The claims
of its two products due to escalating ratio, which was at 66.5 per cent , is
Under the new norms, insurers have to medical inflation and rising healthcare projected to decrease by 50 basis
ensure that hospitals release mortal costs. points.
remains immediately in the event of a Among the products slated for a price
death during treatment. Companies revision is the Senior Citizens Red Car- Star Health has set target to increase
its GWP to Rs 30,000 crore over the
next four years. The company also plans
LIC mulls entering health insurance, explores ac- to increase the share of group health
quisition opportunities insurance within its portfolio. Currently,
the retail-to-group mix stands at 92:8,
LIC is considering entering the health insurance segment and is exploring with a target to shift this to 85:15 in the
acquisition opportunities. The move comes amid a proposal to allow com- coming four years.
posite insurance companies in the sector.
"There is an expectation that composite licences may be permitted by the Join
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In Feb 2024, a parliamentary panel had suggested introducing composite
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rently, life companies can only offer long-term benefit covers under health
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14 July 2024 The Insurance Times