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(viii) Difference in healthcare costs across regions.
(ix) Determining preference of the group holder for administration of group

insurance by TPA, or by insurer itself.
(x) Past claim experience of the proposed group.

Due to highly competitive nature of group insurance, the insurers generally allow
more flexibility and customization in designing the group cover. In employer-
employee group insurance plans, the benefits is many times deployed as an
employee retention tool by the HR of the employer. Often more flexibility or
benefits are added to an existing group to lure them away from another insurer.

Q12. What are the factors that must be considered in underwriting other than
employer- employee groups ?

Ans. Employer- employee groups are traditionally the most prevalent groups offered
for group health insurance. However, as health insurance gains more acceptance
as an effective vehicle of financing healthcare expenses, different types of group
aggregations are developing.

In these cases, it is important for the underwriter to consider the homogeneity and
cohesiveness of the group. Various groups are being formed, viz, Labour
Unions, Trusts and Societies, Multiple- Employer groups, Franchised Dealers,
Professional Associations, Clubs and other Fraternal Organizations.

The Government of various countries also buy various group insurance coverage,
especially for the vulnerable sections of the society. In India, both central and
state governments are sponsoring group health insurance schemes for the poor,
e.g, RSBY, Yeshaswini etc.

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