Health Insurance Market continues to be
loss making portfolio during 2012-2013
Estimates of Indian Health Insurance Market for the year ending March 31, 2013
are now available and according to it this market has touched figure of Rs.15341
Crores.
Overall loss during the year is Rs.1533 crores.
Corporate portfolio and Group Government portfolio (Schemes like RSBY,)
continue to be a loss making portfolio. Retail portfolio continues to be the
segment where insurance companies have been successful in reducing the claims
figures by following rigid norms. May be the decision of PSU’s to go in for
strictness i.e. July 1, 2010 and strengthening of PPN has resulted in good
results.
Indications are that State Governments will not
increase ( as it was happening 2 years back ) their budget for schemes /
subsidy. As on now we are aware of that 4 PSU’s are increasing the premium in
Retail segment by 30% (during 2nd half of 2013). Will it result in
increase in Revenue or it can result in some of the clients not renewing their
policies.
Tuesday, July 9, 2013
Health Insurance Portfolio – An Analysis
Few years back we were very
enthusiastic about the growth of Health Insurance portfolio. This was
especially true during 2007-08, when this portfolio grew from Rs 3210 Cr to Rs
5110 Cr. i.e by 59.20%. Let us look at the growth figures from 2006 to 2013:
% Growth of
Health Insurance over the Years
Year
|
Amount (Rs Crores)
|
% Growth
|
2006-2007
|
3210
|
14.45
|
2007-2008
|
5110
|
59.20
|
2008-2009
|
6634
|
29.82
|
2009-2010
|
8305
|
25.68
|
2010-2011
|
11480
|
38.22
|
2011-2012
|
13184
|
14.84
|
2012-2013
|
15341
|
16.36
|
We have drawn graph showing the % growth YOY and, it shows that figure is fluctuating and is becoming less and less attractive as the years have passed by.
Let us try to make projections for next 6 years.
We have done this with growth rate of 12%, 20%, 30% &
60%.
If we achieve figure of 30% then the portfolio will be Rs 56960 Cr. in 2017-2018.
If we achieve figure of 30% then the portfolio will be Rs 56960 Cr. in 2017-2018.
If some one asks me- What should
be the growth with which you I will be happy?- I will say it should not be 30%
gross but it should be 30% net (as we have to discount for inflation of 10% per
annum in normal costs and 20% per annum in health care costs). Let us not be
satisfied with meager growth of 16%- let us aim for 60%.
It means we should have growth of
60% year over year and then the figure will reach Rs 160862 crores in 2017-18
Wednesday, June 26, 2013
Good idea to buy Health Insurance for your support staff.
Good idea to buy Health Insurance for your support staff.

“Make Compassion your passion on 28th June” is a good theme. On that day or nay other day in the year you as an individual can do something for your support staff (Servant, Maid Servant, Driver, Mali, Gardener, Chowkidar or Guard) by giving them gift of insurance policy.
or any one who is giving Health Insurance or other
insurance policy to his/her support staff deserves appreciation.
Nikhil Dwivedi has done a good
thing by buying Health Insurance for his employees as well as families. He has
got good appreciation for his gesture.
Times of India is leading a campaign with focus
on Compassion.

“Make Compassion your passion on 28th June” is a good theme. On that day or nay other day in the year you as an individual can do something for your support staff (Servant, Maid Servant, Driver, Mali, Gardener, Chowkidar or Guard) by giving them gift of insurance policy.
All these efforts deserve
appreciation.
Insurance Foundation of India a
Not for Profit Organization is doing good work in spreading the message of
Insurance among masses (www.ifingo.org) and has been making NGO’s aware of Micro Insurance &
Social Insurance. Recently a Conference was held in Delhi in association with PHD Chamber of Commerce,
where large number of NGO’s attended the conference.
What we have to say it
1. Nikhil Dwivedi
2. Times of India
Friday, June 21, 2013
30% Increase in Health Insurance Premium
30% Increase in Health Insurance Premium
It is time strict steps are taken to correct this.
It
was anticipated for quite sometime that Health insurance Premium will go up as
inflation has been affecting the costs of Insurance companies.
In
next few months (second half of 2013) let us be prepared for increase in
premium of the order of 30% in following companies:
New
India
Assurance August 2013
National
Insurance October 2013
Oriental
Insurance October 2013
United
India June 2013
According
to the Mr. N.S.R.Chandraprasad Chairman , National Insurance Company Ltd – “ This increase is coming after 6 years as
last time it was done was in 2007 “
We
appreciate the increase in premium so that Health Insurance Portfolio should
not be a loss making portfolio. In fact no portfolio should be a loss making
portfolio.
One
thing which we do not understand – why do Insurance Companies do aggressive pricing
when it comes to quote for Group Health Insurance? Corrective steps are needed
to control this practice so that Group Health Insurance Portfolio should also
be a profit making portfolio. Claims at 125% of the premium are not acceptable.
Recently
we came across a case where claims during 2012-13 were Rs.13.5 lakhs but
another company picked up the business by quoting Rs.9.80 lakhs. We feel
individuals / families are being penalized for this Group Business.
Saturday, December 29, 2012
Mount Elizabeth Hospital Singapore
Mount Elizabeth Hospital Singapore
This great hospital has got lot
of publicity in India
in last 3 days (Dec. 27, 2012 to Dec. 29, 2012).
We had high hopes for recovery /
treatment of first private citizen of India, who was sent for treatment
on Government of India expense.
The Interesting phenomenon I came
across in 3 days is that more than 60 crores persons living in India
have become aware of this hospital that it is a super specialty hospital of
world repute for organ transplant.
Case Study 1:
Phone call received by us from a
prospective client who wishes to buy Overseas Travel Insurance policy for 7days so that he can go and get treated in Mount Elizabeth under this policy.
He was rather disappointed to
know that Overseas Travel Insurance policy issued by insurance companies does
not cover treatment for disease which is pre-existing.
Case Study 2:
Phone call received by us from a
prospective client who wishes to buy Health Insurance Policy for Rs. 2 Lakhs
and wishes to go to Singapore for being treated in Mount
Elizabeth.
He was surprised to know that
a)
Rs. 2 Lakhs is too small an amount for being treated in
this world class hospital, where room rent for lowest single room is Rs. 30,000
or so. We are not aware of costs for
treatment. Our assumption is that it should be very high.
b)
The policies issued by all but 1 insurance company
cover treatment within India.
The only exception is Religare Health Insurance product where you can get
treatment in an overseas hospital (Mount Elizabeth
Hospital also) provided you have sum assured of either Rs. 50 Lakhs or Rs. 60
Lakhs.
We come to conclusion that:
- Those who can afford.
- Those who wish to be treated in reputed hospitals like Mount Elizabeth should go in for Religare Health Insurance policy for sum assured of Rs. 50 Lakhs / Rs. 60 Lakhs.
Otherwise let us be satisfied
with our world class hospitals- Medanta, Apollo, Fortis etc.
Friday, December 28, 2012
Intoxicated accidental victims have better recovery in hospitals
According to recent study of University of Illinois
at Chicago School of Public Health – Injured patients were less likely to die
in the hospital if they had alcohol in their blood and the more alcohol; the
more likely they were to survive.
Dr. Lee Friedman epidemiologist who was the project head said
“However, after an injury, if you are intoxicated there seems to be a pretty substantial
protective effect,” “The more alcohol you have in your system, the more the
protective effect.” Dr. Lee Friedman is Assistant Professor of Environmental and
Occupational Health Sciences at UIC in Chicago.
The project team headed by learned professor analyzed Illinois
Trauma Registry data for 190,612 patients treated at trauma centers between
1995 and 2009 who were tested for blood alcohol content, which ranged from zero
to 0.5 percent at the time they were admitted to the trauma unit. It is
surprising that only 6,733 died in the hospital.
The study examined the relationship of alcohol dosage to
in-hospital mortality following traumatic injuries such as fractures, internal
injuries and open wounds. Alcohol benefited patients across the range of
injuries, with burns as the only exception.
The benefit extended from the lowest blood alcohol
concentration (below 0.1 percent) through the highest levels (up to 0.5
percent).
“At the higher levels of blood alcohol concentration, there
was a reduction of almost 50 percent in hospital mortality rates,” Friedman
said. “This protective benefit persists even after taking into account injury
severity and other factors known to be strongly associated with mortality
following an injury.”
The findings of this study point:
- It’s important for clinicians to recognize intoxicated patients but also to understand how alcohol might affect the course of treatment.
- This study is not encouraging people to drink, the good thing which we find in this study is that interesting projects are undertaken in USA.
I wonder whether any such study has
been undertaken in India.
The implication of such study as
for insurance industry in India is
concerned is that if a person was intoxicated and is involved in accident his hospitalization
claim, claim far car damage everything may be denied.
Let us welcome Liberty Videocon General Insurance Company Limited
Let us welcome
This company is starting operations from Jan 1, 2013.
This company is 25th insurance company fromGeneral / Non Life / Health Insurance Segment.
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