Health India TPA eyeing 15-20% growth over the next few years

With Central and State governments rolling out health insurance schemes to cover those below poverty line and unorganised sector workers, Mumbai-based Health India TPA Services Pvt Ltd, a third party administrator for many non-life insurance companies, said it expects to clock 15-20 per cent growth every year over the next few years.

Mitul Vora, Promoter, Health India TPA Services, said: “Today less than 4 per cent of the public has private health insurance cover. If you include government schemes, then this goes up to 25-30 per cent. Given the under-penetration in the health insurance segment, the scope for growth is tremendous.”

The company, which was set up in 2002 to provide cashless hospitalisation and reimbursement of medi-claim settlement to the insured on behalf of non-life insurance companies, settled 1.40 lakh claims amounting to about ₹400 crore in FY16.

Kamal Jeet Gupta, Joint Managing Director, said: “This year we are expecting to settle about two lakh claims amounting to around ₹500 crore.”

Health India TPA’s turnover went up to ₹93 crore in FY16 from ₹30 crore three years back, Vora said, adding that his company is eyeing a turnover of ₹100 crore by March-end 2017. Typically, profit in this line of business is 8-10 per cent of the turnover.

Vora said: “As our insurance market becomes a little more advanced, we are hoping that the insurance regulator will see the TPA as a segment that has matured. This will enable the segment to follow the practices of the West.

“For example, in the US, the TPA business is a multi-billion dollar industry. There the TPAs are allowed to handle insurance premiums.”

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