Mumbai: Head of the second largest private insurance company in India, Bajaj Allianz, has called for all-round efforts between all players to make health care more affordable to ensure that insurance costs do not continue to increase.
These steps include GST cuts and widen the coverage of the state scheme to cover all citizens.
Speaking to Toi, Bajaj Allianz General Insurer for MD & CEO of Tapan Singhel said that the cost of care has risen after Covid’s pandemic because the additional protocol has been implemented.
Some of them tend to be structural.
“Insurance cannot change prices for three years and, when changes occur, customers find it difficult for 15% medical inflation.” He added, “Health insurance rates are always focused.
However, there are three players – insurance companies, hospitals, and the government.
Medical inflation continues to shoot every year.
When it comes to the government, it continues to collect 18% GST on health insurance.” According to Singhel, there is a need to reduce service taxes on health insurance and regulate health care so that there is no sharp increase in premiums for customers.
“The insurer has done their bits because they lose money in health insurance.
The government and hospital also need to do their bits,” said Singhel.
“We must learn from the government health scheme.
I believe that, such as the State of Jammu and Kashmir, the state government scheme that provides Hospital Health Insurance 5 Lakh must be open to all citizens.
This will result in market behavior to increase health insurance affordability,” he said .
Bajaj Allianz has a reputation as the most profitable non-life insurance company with a sharp focus on the combined ratio (claims ratio plus management costs for premium).
In the first half of FY22, Bajaj Allianz managed to be in the top two – both in terms of upper line and bottom line.
The company’s gross written premium rose 16.8% in the first half to 7,529 crore, while the net profit grew 8% to RS 788 Crore.
“We have managed to reduce our position because we have never lost their heads to acquire a business,” Singhel said.