Spending on health insurance tilts towards the family’s breadwinner, traditionally male, but that is changing: New India Assurance Chief

The insurance sector does not boast of too many women occupying the topmost post, though women make up a significant part of the workforce. However, it does offer them a lot of opportunities.

Women should use their sense of fair play, empathy, ability to multi-task and dedication to break through to the top, Neerja Kapur, chairman and managing director of New India Assurance, India’s largest general insurance company, told Moneycontrol’s Preeti Kulkarni in an interview. Edited excerpts:

Also read: Women’s day: Meet the Next Gen women fund managers who want to reach the top

How would you rate the insurance industry in terms of opportunities that it provides to women? Is it any more or less challenging for women compared to other sectors?

Insurance is a highly competitive field, but it also offers a lot of opportunities for growth and success for women. With their sense of fair play, sensitivity, empathy and ability to multitask, women have the potential to bring a unique perspective to the insurance sector. With hard work and dedication, we can make a successful career in the insurance sector, which is undergoing many exciting changes.

However, it is important to note that the challenges faced by women in the insurance sector may not be unique to this industry.

What are the specific issues that women face in this industry?

It’s not only in the insurance industry; women have to deal with several challenges in other sectors, too. For instance, women tend to take upon themselves more responsibilities both at home and work, which can make it challenging to balance work and home life. They may face discrimination in the workplace, which can create a hostile work environment and negatively impact their mental health and well-being.

But these issues are not unique to the insurance industry and can be found across our societies both in India and abroad. However, in recent times, there has been a sea change in the working environment, particularly in the financial and insurance sector, as we see more and more women in organisations, and in positions of power and influence.

Also read: Wedding vows, festivals, and a housie: How Priyanka Acharya wants to redefine the way money is taught to women

Tell us about the importance of health insurance for women, in particular. What is the share of women’s health insurance coverage in New India’s portfolio?

Health insurance is important for all as illness is not gender-specific, although there could be some illnesses peculiar to women. However, both genders equally need insurance. Though usually, the spending on insurance tilts towards the breadwinner, traditionally the male member of the family, we see that the perception is changing.

It is evident from our experience — 45-48 percent of the lives covered today are women. Barring the first year of the pandemic, our health portfolio has seen fair participation by both genders.

Also read: Moneycontrol-SecureNow Health Insurance Ratings: How to pick the right policy?

What is your current product portfolio mix like?

Our current product portfolio is a mix of health, motor, property and miscellaneous business, with the health portfolio having the major share. It accounts for approximately 50 percent of the total product mix, while the motor business constitutes around 30 percent, with other lines of business forming 20 percent.

How will a composite licence, as proposed by the government, help New India Assurance and other general insurers?

A composite license would allow general insurance companies to offer both life and non-life insurance products under a single licence. General insurers can diversify their product line, boost their market share, and give customers more comprehensive coverage.

By enabling insurers to streamline their procedures and cut expenses related to maintaining numerous licences, a composite licence can also offer operational benefits. This might aid general insurers in boosting their long-term profitability and bottom line.

How a composite licence would affect certain businesses would depend on the terms that are actually rolled out and also a variety of other elements, including the insurer’s current product portfolio, clientele and the competitive environment.

Many companies are increasingly extending OPD covers, plans for those with diabetes and hypertension etc. What kind of products does New India plan to introduce in the next financial year?

We are planning to have OPD covers in general and not just cater to certain illnesses. However, our focus has always been on increasing insurance penetration and reaching out to various segments and regions rather than focusing on specific segments.

We are also expanding our umbrella of covers to include various wellness features. Proactive and preventive approaches to health support optimum levels of physical, emotional, mental and social functioning. If not attended to in time, it (health issues) can lead to more serious conditions which can be more costly than expenses incurred on OPD treatment.

How have things changed for the health insurance segment post-Covid?

We have seen an increase in demand for health insurance as a result of the pandemic creating an increase in awareness. Though there was a huge outgo due to Covid-related claims, we deferred any increase in premiums so as to avoid increasing the hardships of people.

Insurers must now ensure that the increased awareness among the general public of healthcare insurance products is properly channelled into increased penetration and does not lapse into inertia, requiring another external impetus.

Also read: What is the ideal health insurance coverage amount?

What is the average sum assured size now compared to earlier?

We certainly saw an increase in the sum insured post the pandemic as complications during the pandemic required longer duration stays in hospital and necessitated expensive treatment. On average, we have seen an increase of 15-20 percent in sums insured across different segments and policies.

Also, people realised that the floater limits are inadequate in the event of more members of the family getting affected during the policy period.

What will be your key focus areas for the next financial year?

Next year, we will invest more in digital technologies to boost client interaction and increase productivity. We have innovative products in the pipeline to fulfil the changing needs of customers. We will also invest in enhancing the skill sets of our employees.

What are the three key trends in the general insurance sector, particularly health, that you foresee in the next three years?

Demand for digital health services has increased as a result of the Covid-19 epidemic, and this is likely to continue. Health insurers could begin providing coverage for telemedicine services, remote monitoring tools, and other digital health technologies.

Insurance firms are increasingly emphasising prevention and wellness in order to save healthcare costs and enhance consumer health outcomes. Health insurers might provide additional preventive health services like fitness programmes, nutrition advice and health check-ups.

The industry is also likely to use data analytics and artificial intelligence (AI) tools more extensively to enhance risk assessment and claims processing.