Page 14 - The Insurance Times March 2025

above by more than 10% in a single ums. This has been a regulatory con- seeking care. By bringing quality medi-
year, following complaints from policy- cern for IRDAI," the circular had said. cal care closer to customers, we aim
holders, some of whom saw their pre- to ensure their comfort and peace of
miums double within a year. Star Health Insurance ex- mind," company MD and CEO Anand
Roy said in a company statement.
Some insurers have assumed the cap pands home healthcare
applies to the last premium paid before Cities like Mumbai, Delhi and Pune
the hike. However, insurers are uncer- service to 100 locations have been proactive in the adoption of
tain whether they can impose a cumu- Standalone health insurer Star Health these services, with services primarily
lative increase upon renewal after a and Allied Insurance Company Ltd has focused on treating conditions such as
multi-year policy term ends. expanded its Home Health Care initia- viral fever, dengue. More than 15,000
"We are going to ask the regulator to tives to 100 locations across the coun- patients have benefitted from the
try, the company said on Wednesday.
clarify whether, for a senior citizen Home Health Care programme.
with a three-year policy, insurers can Launched in July 2023, the initiative
increase premiums by more than 10% covers 85% of Star Health Insurance's Investigating claims of cus-
when the policy renews in the fourth customer base, offering cashless door-
year, or if the cap will continue to ap- step medical care service. tomer data leak: Niva
ply year by year," the chief executive "At Star Health, we believe that Bupa Health Insurance
of an insurance company said. health insurance goes beyond provid- India's Niva Bupa Health Insurance Co
IRDAI has cited financial vulnerability ing financial coverage. It is a bridge to said, it is investigating whether any
as a key reason for this restriction. "The accessible and affordable healthcare customer data has been leaked after
most vulnerable age group is senior for every individual. Our vision is to an anonymous person claimed to have
citizens with limited sources of income. remove barriers such as high access to such data.
They are the most impacted by steep hospitalisation costs, logistical chal-
increases in health insurance premi- lenges and the stress associated with "The threat actor via email, claims to
have the customer data of Niva Bupa.
As a matter of urgency, we continue
Bupa may increase stake in Niva Bupa Health to conduct investigation(s) of data leak
and implement measures to mitigate
Insurance the risk," the insurer said in a state-
UK-based Bupa, which currently holds a 56 per cent stake in Niva Bupa ment. The company did not give any
Health Insurance, may consider increasing it in the future, said Krishnan further details.
Ramachandran, MD & CEO of the standalone health insurer.
If confirmed, this would be the latest
This comes after Finance Minister Nirmala Sitharaman announced a hike in in a string of data leaks that have
the Foreign Direct Investment (FDI) limit in the insurance sector from 74 plagued the sector in recent months.
per cent to 100 per cent in her Union Budget speech.
In November, HDFC Life Insurance said
"They (Bupa) are a long-term shareholder; clearly they are very excited an unknown source shared certain cus-
about the India opportunity. I am sure in the times to come, they will think
tomer data with it with "mala fide in-
about increasing their stake," Ramachandran said. Currently, the UK-based
tent".
healthcare services company Bupa Singapore Holdings has a 55.98 per cent
stake in the recently-listed standalone health insurer. Fettle Tone LLP holds In August, Star Health faced a data
another 17.9 per cent stake. The company was listed on the exchanges in theft incident where stolen customer
November 2024. data, including medical reports, were
According to Ramachandran, investments in technology, data, and analytics publicly accessible via chatbots on
will aid the company in handling greater volumes and bring down its com- messaging app Telegram and through
bined ratio to 95-96 per cent in the next 5 years from the existing 100.9 websites.
per cent. Combined ratio, which is a measure of profitability for a non-life India's insurance regulator had in Oc-
insurer, when below 100 per cent indicates that the company is making an tober directed insurers to audit their
underwriting profit, while a ratio above 100 per cent means that it is pay- IT systems following concerns over
ing out more money in claims than it is receiving from premiums. such leaks.

The Insurance Times March 2025 13