Page 14 - The Insurance Times August 2022

ADIA eyes stake in Aditya strophic when it accounts for 25% or Capital Region and even Gujarat, Na-
more of the total annual consumption tional Insurance Company general
Birla Health Insurance
expenditure of a household. manager Ashok Kumar Lahoty told
Abu Dhabi Investment Authority TOI. "The loss ratio in Zone 1, which
"The reliance on a poorly regulated
(ADIA) is in talks with Aditya Birla has Gujarat, is highest at 92% for some
private sector seems to be a key limi-
Group to invest around Rs 1,200-1,500 of our products. Zone 3 (where Kolkata
tation of PFHI policy. Governments
crore in the Aditya Birla health insur- lies) has a loss ratio of 80%-82%," he
need to find more effective ways of
ance arm as growth equity, people in added.
protecting the elderly from cata-
the know said.
strophic health expenditure if the goal
Aditya Birla Health Insurance Co Ltd of UHC (universal health coverage) has Life insurers may soon sell
(ABHICL) is one of five active to be realised," stated the study.
health insurance
standalone health insurance companies
IRDAI is planning to allow life insurance
with a 14% market share of the gross
Health Insurance may be
underwritten premium in the first companies to offer full-fledged health
three months of the current fiscal year, cheaper in Kolkata insurance policies, two people with di-
rect knowledge of the plans said, in a
according to data from the IRDAI. Kolkata residents may soon have to pay
move that will likely reduce premiums
a lower health insurance premium than
and increase access to affordable
Public health cover no those staying in other metros like
health cover.
Mumbai, Delhi, Bengaluru and
shield against high ex-
Hyderabad. An internal committee of IRDAI has
penses: Study Several health and general insurance been discussing the proposal and the
regulator is likely to issue draft guide-
The first study in India on publicly companies are coming up with a sys-
lines allowing life insurers to sell indem-
funded health insurance (PFHI) in the tem in which different zones and areas
nity health insurance products.
context of "catastrophic health expen- will have different premiums following
diture" faced by the elderly found that deregulation of the sector by the "Life insurance companies inherently
it was not effective in financially pro- IRDAI. A city or zone with a lower "loss get more customers than health insur-
tecting them. Around 30% of those ratio" (actual claims compared to ev- ers in the retail space, which will help
under publicly funded health cover ery Rs 100 paid as premium) will now them get more people covered under
faced catastrophic expenditure during get to pay a lower premium if other medical insurance at more affordable
hospitalisation at private facilities and factors (like type of policy and age premiums," one of the two people
about 7% of even those using public group of the insured) remain the same. cited above said.
facilities faced it.
Kolkata had a much lower loss ratio "With captive customers, larger distri-
Health expenditure is considered cata- compared to Mumbai, the National bution networks and higher disposable

14 The Insurance Times, August 2022