In the health insurance segment, customers have not taken to portability, that is, switching between insurers/products, in a big way.
“Portability in health insurance is not as popular as it is in motor or any other insurance product,” says Suresh Sugathan, Head – Health Insurance, Bajaj Allianz General Insurance.
Absence of standard products, and procedures such as informing 45 days before the renewal date the desire to switch are some of the possible reasons for its low popularity, he added.
According to Ravinder M, National Head – Rural, Accident & Health, Tata AIG General Insurance Company, the process to port involves documentation and adherence to timelines, making it a lengthy and well-planned activity.
“Customers are choosing to port only when they have a product/service/claims-related issue,” he said.
Unlike in mobile telephony where one can opt to switch for want of better service or price, customers in health insurance do not go for a change unless faced with an unpleasant experience.
Further, agents do not get any commission on portability.
The insurers, however, are tight-lipped on actual number. “We haven’t lost customers yet…however it’s too early to comment on the numbers we have acquired,” said a Tata AIG functionary.
Bajaj Allianz said it received “many” requests for portability from other insurers and some 85 per cent was accepted, and the incoming and outgoing portability ratio was 70:30.
According to IRDA, the number is “too low”. However, the slew of changes introduced by the regulator in health insurance norms and key definitions would make things more understandable to customers.
This could change the health insurance portability scenario.
Health insurance is a rapidly growing segment. In the last financial year, Rs 13,092 crore premium was underwritten, a growth of 14 per cent over the previous year.
Apart from multi-non-life insurers there are also three standalone health insurers who underwrote Rs 1,660 crore premium last year, as per IRDA data.