30 minute interview

'Under Maternity Cover, We Would Insure the Baby'

Max Bupa Health Insurance, a 74: 26 joint venture between Max India and UK's Bupa, is getting launched in India, soon. Damien Marmion, Chief Executive, Max Bupa Health Insurance, tells Rita Dutta about the product and strategy to penetrate the market. Excerpts:

Damien Marmion Chief Executive, Max Bupa Health Insurance

What has encouraged Max Bupa to make a foray in this section?

Health insurance in India has grown over 35 per cent per year for the past few years and is set to continue. India has a population of over 1.13 billion and by 2025 it's going to have a middle class of about 600 million. This is where we see a huge demand as 70 per cent of the healthcare spends is private and 90 per cent of that spend is not insured, it's paid for out of pocket. Most of the existing health policies do not cover full-day care benefits, dental services, vision services, preventative care like free health check- ups, home health services or long-term care, and rarely outpatient services or international cover; which is the need of some consumer segments today.

Most Indians buy health insurance to get tax advantage and as a saving. Do you think this attitude would be a hindrance for your product?

To formulate our strategy for the Indian market, we commissioned some studies from market research company TNS. That threw up some interesting findings about how people perceive health insurance in India. It is seen as an instrument to protect savings. It is not aimed at protecting the asset that is health. If the main thing that the customer wants is to protect his savings, then we will offer more comprehensive products to ensure that those savings are better protected. However, a health insurance product deals with aspects of people's health and requires detailed explanation compared to other financial products. Hence we will enable consumers make an informed decision. Secondly, we will assure the quality of the doctors and the hospitals that are on our network. Our network will be selective, but will cover all the main hospitals that a person like you, for instance, would visit. And we will handle all the claims ourselves, so that we can provide a superior service.

How does Bupa's experience in the UK help in the Indian sub-continent?

Max Bupa Health Insurance Company Limited brings Bupa's 60 years of global expertise to India, as well as local market knowledge in insurance and health care by Max India. Bupa is not just an insurance company. It is a health and care company. For instance, we run over 300 homes for the elderly in the UK. We coach people on health in the US. The portal, bupahealthdialog.co.uk, builds on the knowledge that Bupa has accumulated. Max Bupa Health Insurance Company Limited plans to use some of this expertise in India to develop better services for the Indian consumer.

How difficult was it to design the product when not enough data is available on disease and usage patterns of different socio-economic segments?

The lack of data availability on disease and usage patterns of different socio-economic segments in India does pose a challenge for innovations in product development. To overcome these, we have spent considerable time in research and gaining consumer insights and have developed our products and services based on these.

What would be the uniqueness of your product portfolio?

We would focus on a superior customer experience and the delivery of promise at the moment of truth. Max Bupa Health Insurance Company Limited's vision is to become healthcare partners and provide its customers expertise for life. For instance, one of the value adds Max Bupa Health Insurance Company Limited intends to offer is under the maternity offer where the new born baby of the insured will automatically be covered for insurance. We will also offer vaccinations as per the World Health Organisation recommendations. In India, we will be focusing on wellness and work with our customers in helping them lead healthier lives. We may in future offer primary, secondary and dental cover. Even homeopathic treatment may be covered.

How different would be the Indian product than what is available in the West?

The products available in the Indian market have been designed keeping in mind the need of the Indian consumers. The TNS research has uncovered some interesting facets. Firstly, most people purchase health insurance as a reactive measure to deteriorating health and not proactively during good health years. Secondly, users and non users of health insurance understand the need for the same, but do not trust that their claims will be processed in time, and without follow up. Thirdly, value perceptions of health insurance further get eroded due to the fact that they do not see any returns in comparison to life insurance policies - as life insurance sells as an investment product more than as a risk mitigation product. Additionally, it found that there is a need for a high quality health insurance product in the market, which consumers can trust to deliver when the need arises and that health insurance companies can also play a role in helping customers manage their health more proactively.

With the experience in offering specialised health insurance expertise globally, we are confident that we can help raise the standard of health insurance in India when we launch through our products.

What additional benefits would you provide to the customers?

We believe that our success will depend on how happy our customers are. Thus, more transparency in the initial stages means better customer satisfaction at the time of claim reimbursements. It is important that the customer understands what is covered and what is not covered and for what he is paying his premiums. We believe in building relations with our customers that go beyond transactions and this is only possible when we are transparent with them.

Who is your target clientele and why?

The products will be all across the spectrums, the premiums would be ranging from Rs 3,000 to more than Rs 50,000 as offerings are going to be in premium cities for the premium category. We will also have some rural insurance obligations.

In which cities are you planning to enter first?

We are looking forward to start with the six main cities — Delhi, Mumbai, Chennai, Bangaluru Hyderabad and Pune. But we also plan to expand our network over 20 cities in the coming three years.

Some health insurance companies have witnessed annual growth of 200-300 per cent. What is your target growth plan?

We are looking to grow profitably in this market. What is your strategy of selling the product?

We will offer our customer comprehensive family-based products. Our USP is the expertise in delivery of high quality health insurance services to our customers. We train our people for responsible, needs based selling and follow an extensive training process. We will service our customers directly and offer wellness benefits each year that they renew the policy. We are currently also building our network of relationships with quality hospitals for appropriate service.

Why is that you wont tie-up with a TPA? Would not that prolong the time of claims settlement?

We observed that the insurance companies are faceless and the TPA is the one dealing with the customer. We want to own the customer, to build health and wellness around the family. Since most product features can be replicated quite easily the differentiator will have to be service and that can only be assured if deliver it ourselves.

rita.dutta@expressindia.com