With the growing need for health insurance penetration in India, both government and the private sector are keen on bringing in new, innovative products to the market. Sandeep Patel, MD and CEO, Cigna TTK speaks on the changing scenario within the health insurance sector in India, in an interaction with Raelene Kambli
Can you give an overview on the current insurance scenario in India?
At present there are 24 life insurance and 28 non-life insurance players in the market. Among the non-insurance players there are five standalone health insurance players and CignaTTK Health Insurance is one among them. The insurance penetration in the country is at 3.9 per cent way below the world average of 6.3 per cent. Recently, the Insurance Bill was amended and the FDI limit was increased from 26 to 49 per cent. This move was welcomed by the industry and is expected to further support development of the insurance industry with infusion of capital. For health insurance the Bill made more sense as it can now operate as a separate line of business.
Is the insurance market in India still fragmented?
The market is dominated by public sector insurance companies, both in life and non-life business. But the private sector is catching up as they offer wide range of products. With FDI opening up, it’s expected that infusion of capital will give a push to the products in terms of innovation and reach.
What has been the impact of added emphasis on health insurance in the Union Budget 2015?
The increase in the tax deduction limit on health insurance premium to Rs 25,000 from Rs 15,000, and to Rs 30,000 for senior citizens under section 80 D, was a positive step forward to help increase penetration in, and awareness of health insurance products. This move is likely to provide much needed momentum to the health insurance industry by incentivising the end consumer and encouraging them to set aside more money for insuring themselves and their families for their health and well-being needs.
How will this move help improve the health insurance scenario in the future?
People in India don’t take up health insurance since there are no returns. The move will bridge tax incentive gaps between health insurance and other long term insurance, pension, and investment based products.
Why are Indians reluctant/ lagging to invest in health insurance?
The awareness about health insurance is very low in India. Even much aware people avoid buying health insurance as the thought of falling sick don’t cross their mind. It is need of the hour for insurance companies to spread awareness on health insurance and ease the claim process so that customers can have a seamless and pleasant experience. At Cigna TTK we have attempted to take care of these nuances by training right and deploying trained medical practitioners to assist our customers. We have made considerable technology innovations like Cigna TTK distributor portal and a Cigna TTK mobile app for the first time in the health insurance space. This is an on-the-go facility for our distributors to enable policy purchase online with greater ease and convenience.
How much health insurance cover does an individual need?
The health insurance cover varies from individual to individual. For an adequate cover the important parameters to be considered are age, gender, city of residence, pre-existing diseases, family history and financial reserves. If one has a group health insurance cover from the employer, top-up covers are useful in such situations, as the cover may not be sufficient.
What are the myths associated with the Indian health insurance sector?
There are a few myths associated with the health insurance sector because of ignorance. The common ones are that claims get settled only against hospitalisation, one does not need health insurance if healthy, have a group health cover and hence don’t need separate policy. I think it’s important to address such issues and create awareness on health insurance.
How does Cigna TTK add value to its customers?
Cigna TTK is the latest entrant in the market as a standalone health insurance company. We assist our customers in living healthy through our ProActiv Living Program. We promote health and wellness, by partnering various prominent marathons across the country and provide complete assistance to our customers in illness and in wellness. At Cigna TTK we believe in offering immediate gratification to our customers hence, we offer health maintenance benefits immediately after buying the policy.
What are the new innovations by Cigna TTK?
Product innovations are the need of the hour. At Cigna TTK we have pioneered few innovations like Cigna Global Health Plan, Worldwide Emergency Cover, Sum Insured upto 1Crore etc. We continue to bring more innovations as we believe one size does not fit all.
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