Page 13 - Insurance Times July 2019

Health insurance to emerge as the largest segment over IDBI Bank signs pact with

motor soon: HDFC chief Max Bupa for health in-
Deepak Parekh, HDFC Chairman, said health insurance sector is likely to emerge
surance products distri-
as the largest segment in the insurance segment, over-
bution
taking motor insurance, which is presently the largest
portfolio for non-life insurers. IDBI Bank Ltd and Max Bupa have
signed a
"In the general insurance space, it is expected that the
bancassurance
share of accident and health insurance will rise from
c o r p o ra t e
30% currently to 39% in the next five years. This growth
a g e n c y
means that accident and health will have a larger share
agreement
and overtake motor insurance which currently accounts
to distribute Max Bupa'a product
for the largest component in general insurance," Parekh said while announc-
distribution.
ing the HDFC's takeover of Apollo Munich Health Insurance.
As part of the agreement, Max Bupa
"Accident and health is currently the fastest growing segment in the non-life
will offer a wide range of health in-
insurance sector. The share of accident and health has increased from 9% in FY
surance products and digital first
2001 to 30% in FY 2019," Parekh said. He added, "Fortunately, there is a chang-
propositions, tailored for the bank's
ing mindset where people are beginning to recognise that health insurance
20 million customers spread across
should not be construed as an expense, but as a necessity and as an invest-
its 1,800-plus branches in India.
ment to safeguard their future."
Rakesh Sharma, MD & CEO, IDBI
According to Parekh, an estimated 42 crore individuals have health insurance,
Bank said, "Our alliance with Max
which includes government and corporate schemes. But when these schemes
Bupa is a result of growing customer
are stripped out, only 3.3 crore individuals have a retail health policy. "Not
demand to have the best in class
surprisingly, India's health expenditure which is the sum of public and private
health insurance products. Through
expenditure is under 4% of GDP compared to a global average of 10%. If one
this, we will be able to offer cus-
looks at many western countries, the expenditure on healthcare is predomi-
tomer centric digitally enabled
nantly by the public sector or through insurance," he said.
health insurance products to our
He further said that public health and insurance expenditure accounts for one-
customers."
third in India, while an overwhelming two-thirds is met by out-of-pocket expen-
"IDBI Bank is giving more focus to in-
diture, where the individual consumer bears the cost of his or her own
crease the fee income through Third
healthcare. "Against backdrop of rising life expectancy and high out-of-pocket
Party distribution. This tie-up is step
expenses, it is clear that the potential for growth in health insurance is im-
in that direction," he added.
mense," he added.
Ashish Mehrotra, MD & CEO, Max
Steering Committee formed for health insurance of J&K Bupa said, "We are committed to
employees help 20 million customers of the
bank lead healthier, more successful
The government has constituted a Steering Committee, headed by the Chief
lives. Further, both IDBI Bank and
Secretary for implementation of Trust Based Medical Insurance Scheme for the
Max Bupa share strong synergies in
employees of J&K State. The committee shall finalize the modalities of a Trust
terms of commitment towards al-
Based Health Insurance (TBHI) scheme for employees and guide the Health &
ways keeping customers on first pri-
Medical Education Department in establishing the system/process for doing the
ority, strong market reputation and
necessary background work in setting up the TBHI scheme.
pan India presence."
Administrative Secretaries of Health & Medical Education Department, Planning,
Max Bupa will provide service of
Development & Monitoring Department, GAD, Department of Law, Justice &
pre-authorization of cashless claims
Parliamentary Affairs and representative from National Health Agency, Govern-
within 30 minutes and access to
ment of India, shall be Members of the Steering Committee while Nodal Of-
'Point of Care' desks at leading hos-
ficer for the Trust Based Medical Insurance Scheme for the employees will be
pital chains across the country to
its Member Secretary. The committee has been also asked to monitor the rollout
IDBI customers, he added.
of the TBHI scheme.
The Insurance Times, July 2019 13