IRDAI’s recent move of permitting 100 percent cashless insurance, which allows policyholders to get treated in any hospital and go for cashless settlement, even if it is not a part of the insurance company’s network, is a positive step. It will significantly ease the burden on the customer, at the point of admission. Yes, it has had a slow off-take mainly due to some level of apprehension among certain stakeholders, which I am sure will be allayed over time. I believe once the proof of concept is established, it will pick up tremendous pace. I believe this is a potential game-changer for the industry, and more importantly, for the health insurance consumer.

Do you think a regulator is needed for the healthcare sector as the rates are different and the system is also different?

It’s not for me to say if a regulator for the healthcare sector is required. But speaking as a consumer, I would say there has to be some sanity when it comes to rates. Hospitals similar in facilities seem to have hugely varying rates for treatments and procedures. Even the Supreme Court has advised that there has to be some standardization of rates. I believe only a minority do, but they do enough damage to not just distort the healthcare industry’s reputation, but also pricing and affordability of health insurance products for the people at large.

For instance — and this complaint comes from many customers — one struggles to understand the logic between charging patients staggeringly different rates for blood tests and other diagnostics, based on the category of room they are admitted in.

Do you think there is a case for introducing composite licenses?

Composite license proposed by the Parliamentary Panel recently will allow insurers to offer both life and P&C insurance products. The decision lies with the respective promoters of various insurance companies. They can verticalise (split into separate companies) to focus more deeply on specific categories, penetration, and growth in a market compounding in the high teens for the last two decades, and expected to grow at the same frenetic pace over next decade… Or they can merge companies for cost efficiencies, creating a one-stop shop for customers’ needs, making it more convenient for the customers to access products for all their insurance and protection requirements.

These efficiencies could also lead to better pricing outcomes for the customers. I think the option should be there; it’s for companies to see what works best for them. It’s a welcome move.

Should the government allow 100 percent FDI in insurance?

This could be instrumental in attracting fresh capital from overseas insurers, thereby securing robust growth for the next two decades. Both the Indian economy and the insurance market hold immense appeal for international insurers. However, let’s also bear in mind that the number of insurers operating in India is significantly lower compared to global standards. This scarcity is partly due to the challenge global insurers face in finding suitable local partners.

With just over 60 insurers operating in both life and general insurance sectors, and many of them functioning as joint ventures, the shortage of capable and willing local partners is evident. Permitting 100 percent FDI would be a game-changer, given its potential to address this issue. Moreover, such a move is likely to encounter less opposition compared to the previous increase in the FDI limit, which was from 49 percent to 74 percent.

The government claims that the Ayushman Bharat scheme has had a big impact and claims big nos. How is it impacting the industry?

The Ayushman Bharat initiative has had a significant impact on the healthcare landscape in India. It has given access to good quality and affordable healthcare to a vast majority of the population. For the common man, it has led to an increased awareness about health insurance, which has in turn led to greater participation. It has helped strengthen the overall healthcare infrastructure across the country by supporting the growth of healthcare facilities in rural areas. It has also indirectly helped increase health insurance penetration in the semi urban and rural areas.

While the government is expecting a high growth over the next decade or two, what are the key growth areas for you and your industry. Where do you see the opportunity?

India is among the fastest-growing insurance markets in the world and is poised to emerge as one of the top six insurance markets by 2032. Backed by the government and with regulatory support, health insurance will continue to spearhead this growth over the next several years. given the increased awareness among consumers particularly post pandemic. Health and motor will be the two largest retail segments driving the growth in the general insurance industry in the near future. This apart, fire and property insurance also have a long runway for growth.

You recently launched a health plan for women. Do you think the market is ready for such a product?

At FGII, we recently conducted a survey to understand the health insurance prospects among women and the relevance of choice and value. According to the #PowHer Survey, only one out of every five women bought their health insurance policy independently, and only one out of every three women were aware of the coverage details of their health insurance. India’s largest minority by any metric is women. To address this undeserved group, we launched FGII ‘Health PowHer,’ which is a comprehensive health insurance plan, designed by women, for women, to meet the varied needs of women across different stages of their lives.