3

Business Advisory


Health insurance is the key driver of growth of insurance industry in India. However, the segment, as a business proposition, has been viewed from different perspectives by various insurers. The approach ranges from those who are clearly focused on health insurance as one of their growth engines to those who have oft-changing interest in the business.

Lifestyle issues, emerging trends in morbidity and high healthcare costs have underlined the need for health insurance. This has led to accelerated purchase of health insurance by the urban households, prompting a spurt in the activities in the retail space.

As regards the group health insurance business, some insurers gravitate towards it driven largely by their preoccupation with volumes. Consequently, the industry witnesses an indiscipline reflected prominently in the questionable underwriting standards and sub-optimal pricing of the group products. We believe that, in the long run, this shall have a negative impact on all aspects of the business including service standards, checks & controls, profitability and reinsurance support.

On the other hand, the public health & accident insurance programs, though voluminous in terms of the size of the business, pose operational and sustainability roadblocks. Inherent to the segment is a major challenge of managing the eco-system. Imposition of conditions by the Principals that defy insurance logic, sub-optimal pricing, distribution in expansive geographies, ill-equipped healthcare providers, longer-than-manageable span of control leading to malpractices, near-total absence of technology to manage the front-end and the name risk that arises out of large public interface are some of the issues that the industry continues to grapple with.

Putting together our hands-on experience in managing various customer segments, we offer our services in the areas of landscaping the Accident & Health Insurance market, inventorying attributes of customer segments, competition analyses, operations management and business planning.