Hope to get to breakeven in FY18: Religare Health CEO
The bottom of the pyramid segment is something that the company remains bullish about
Health insurer Religare Health Insurance aims to breakeven by March next year.
"The aim was to achieve breakeven by the six year of our operations and that is on track,” Anuj Gulati, CEO, Religare Health Insurance, said in an interaction with Moneycontrol.
Overall, he said that there has been a steady progress in the business and that they have continued to invest in the claims servicing segment.
“Our business has grown close to 40 percent, however it is still a long way to go,” he added.
The bottom of the pyramid segment is something that the company remains bullish about. Gulati said that in this space the financial inclusion initiatives can have a larger impact. “We are positive of initiatives that can be led by the government to make available health financing to that segment,” he said.
With respect to a universal health scheme that is likely to be introduced in the Union Budget, Gulati explained that when it comes up, they will certainly want to participate. Pricing of group health products still remains a concern.
“We have not seen health as a market where risk rates are being quoted in the market. It continues to be a loss leader for the industry. We as an industry have to do much more,” he said.
He said that health insurance has to be priced fairly, hinting that many public sector health insurers were offering heavily discounted rates. Gulati said that currently there is a huge need for a financial mechanism in health and said that the government is actively working for that.
With respect to the upcoming budget, Gulati said that health insurance and health savings should be encouraged. Service tax is levied on health insurance. Such plans that encourage savings, we must get a service tax exemption. This will make it more viable and more accessible to customers.