Comments
Max Bupa Health Insurance, one of the newer entrants, expects to capitalise on the health policy portability, which will kick in from July 1.
The one-year-old company is banking on better service over competition and the fact that most others would have to significantly increase premium levels next fiscal, to help shift customers to itself. Max Bupa's premium rates are already 25-30 per cent higher than other players and, thus, are not likely to see a drastic change.
“We expect our new business to grow at three to five times more than the industry, which itself is expected to grow at 35 per cent. Health insurance portability should help us grow much further than that. We hope to see a shift of customers,” said Mr Karanvir Singh, Director, Sales and Distribution, Max Bupa.
Positive on growth
Adds Dr Damien Marmion, CEO, Max Bupa, “We're at an early stage so we expect massive growth. We can see that our customers like our service because our renewals, which we were targeting at 62 per cent, are expected to end higher at 70 per cent. However, we also need to understand portability better. We expect more clarity by June.”
Premiums in the health insurance industry, according to Max Bupa, are likely to go up next fiscal by 15-20 per cent.
“Few companies have already increased their premiums drastically, while others are about to. The current premium levels are unsustainable. Medical costs have gone up over the last five years with inflation while premiums haven't changed. Plus, with better healthcare available, more people are now seeking medical treatment which is increasing the cost for insurers,” said Dr Marmion.
More products
The private health insurer and part of the $1.6 billion Max India Group, is also preparing to launch three more products. These include an individual policy, a low-cost product and another fixed benefit product for critical care. Present in nine cities, it would also set up offices in Kolkata and Cochin in the next two months.
Max Bupa collected Rs 15 crore as premium between March and December, 2010. The company has a paid-up capital of Rs 240 crore, but expects to raise this to Rs 700 crore in the next five years.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.