Talking to TOI, Bajaj Allianz General Insurer MD & CEO Tapan Singhel He said that in the wake of the COVID pandemic, the cost of treatment has gone up as additional protocols have been put in place. Some of this is likely to be structural. “Insurers cannot change the price for three years and when the change happens, customers find it difficult because medical inflation 15%.”
He said, “Health insurance rates always come into consideration. However, there are three players – the insurer, the hospital and the government. Medical inflation continues to rise every year. When it comes to the government, it keeps on charging 18% GST on health insurance. According to Singhel, there is a need to reduce service tax health insurance and regulate healthcare so that there is no sharp increase in premium for customers.
“Insurers are already doing their job because they are losing money in health insurance. The government and hospitals also need to do their bit,” Singhel said. “We have to learn from government health schemes. I believe that like the state of Jammu and Kashmir, the health insurance schemes of the state government of Rs 5 lakh should be opened to all the citizens of the state. This will result in an improvement in the affordability of health insurance in the market behavior,” he said.
Bajaj Allianz has the reputation of being the most profitable non-life insurer with a razor-sharp focus on its composite ratio (the ratio of claims plus management cost to premium). In the first half of FY22, Bajaj Allianz managed to be in the top two both in terms of top line and bottom line. The company’s gross written premium grew 16.8% to Rs 7,529 crore in the first half, while its net profit jumped 8% to Rs 788 crore. “We have managed to retail our position as we have never lost our head on getting the business,” Singhel said.
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