Efforts on to make health insurance more affordable, says IRDAI chief

Parametric multi-insurance product Bima Vistaar - is in the advanced stages

The Insurance Regulatory and Development Authority of India (IRDAI) is keeping a close eye on the recent spikes in health insurance premiums across the industry, said insurance regulator Debasish Panda, adding that all stakeholders need to make efforts to find a solution.

“Efforts are on to ensure better understanding and co-ordination between payers (health insurers) and healthcare providers (hospitals) over medical treatment pricing. They have to understand that a solution will emerge only through collaboration (between the two parties),” Panda said on the sidelines of the CII Insurance and Pensions Summit held in Mumbai on October 22.

Panda was responding to a query on the health insurance premium hikes that several insurers have effected this year.

He said price rationalisation will happen when the health insurance customer base widens. “Claim experience and actuarial principles also determine pricing (of health insurance covers)… all stakeholders are working together to ascertain how to make the product more affordable,” Panda said.

On a query on the path to consolidation in the industry, he pointed out that for a country of over a billion people, even 70 insurance companies may not be enough, emphasising that the sector needs more insurance companies.

He also called for more industrial houses and big conglomerates to foray into the insurance sector. "I request conglomerates to enter the insurance space in India. The sector is witnessing an exciting period," he said.

Also read | What is the ideal health insurance cover amount?

The insurance regulator then went on to urge more insurers to go for listing. He said, "We have been nudging insurers who have crossed a particular age (number of years of operations) and reached a particular level to go for listing." Panda explained that this will lead to more disclosures and greater transparency that will ensure value for policyholders as well as shareholders.

Implementation of the Bima Trinity - comprising online insurance marketplace Bima Sugam, women-led distribution channel Bima Vaahak and parametric multi-insurance product Bima Vistaar - is in the advanced stages, he said. The Bima Sugam Federation recently appointed ManipalCigna Health Insurance's Prasun Sikdar as its first MD and CEO.