The general insurance industry is in a state of change with regulatory changes and rapid growth of health insurance, digitalization and customer friendly initiatives. Business line He spoke with Sharad Mathur, managing director and CEO of Universal Sompo General Insurance about the trends in the industry and emerging opportunities for growth and the next commercial plans of his company. Extracts:
How do you see the general industry today? What are the main trends you find in different segments?
Industry regulations are evolving and will continue. They are moving towards constructive results. The regulator has begun to play a more development role, promoted by the objective of the Government of Inclusion of Insurance by taking the non -banking population to the formal system. Health insurance will continue to expand. We could even see hospitals that introduce standardized rates for surgical procedures to allow liquidation without claims between hospitals, TA and insurers. We are seeing the development in the incorporation of the client through applications, self -service options, voice bots and chatbots. These innovations reduce response times and simplify the process for both customers and intermediaries, including incorporation intermediaries through applications. For example, in motor insurance, in the service area, there are applications based on IA where customers can direct and load photos through the application not loading existing images, but by carrying them inside the application to avoid any manipulation. These artificial intelligence tools help insurers assess whether a part is repairable or needs replacement, identify what is damaged and estimate the cost. Investment in such technologies will continue. These advances are refining processes and make all the claims settlement trip more fluid.
Lately there has been a group about premium increases in health insurance. What is your opinion about this?
The premium increase is in line with the child of expenses, insurance companies are now incurring largely due to the increase in the cost of health services. Many hospitals today are as five -star facilities, which offer high levels of comfort and premium services. Let’s take, for example, cardiac surgery in Mumbai. In Bandra West, a high profile area, has a high -end hospital and an economic hospital. The cost of the same surgical procedure may differ significantly between these two institutions. In fact, there are cases in which the same surgeon performs identical surgery in both hospitals, but the rate in the high-end hospital is 40-50 percent higher than in the other. This type of cost disparity exerts pressure on insurers. If insurance companies will continue to serve their policy that is effective, they have few more options to adjust the premiums accordingly. So, while the walk may seem steep from the point of view of perception, it is real aligned with the growing costs of medical treatment and hospital services. It is a necessary adjustment to guarantee the sustainability of coverage.
Has the increase in the premium became a deterrent element for people who buy health insurance in some way?
No. People understand the situation and continue to pay premiums. If you observe the data, the growth rate in health insurance is not affected. It is expected that the taking of the shot will remain stable. People now recognize that the increase in the premium is not driven by the reasons for profits, it is about covering the increase in the costs of hospital treatments to policy calls. Where it makes sense, we are also returning to the client in the form of discounts, either through bonds without claim or incentives for the maintenance of a healthy lifestyle. In such cases, people actually receive reduced premiums.
What is the state of Bima view, a product all in one discussed by the regulator? The industry was expected to launch this product a long time, but the leg has been delayed … ,,
Yes, we are still waiting for progress in this front. Bima Trinity, Bima Distar, Bima Sugam: All these initiatives are in process. We have made investments in Bima Sugam, and we are optimistic that it will be another platform to complement our digital efforts. It will help with the inclusion of the client, incorporation, intermediate participation, customer service and claims service. In addition, Bima Vahak, which focuses on empowering women in rural areas, such as Anganwadi workers, will also create employment opportunities in these communities. The products will be low price and integral, which guarantees that premiums remain affordable for the target population.
When will it be launched? Can you give a timeline?
It is expected to be launched at any time. We are listening that it could be in the next month or two, but I cannot comment on the exact timeline. However, it is definitely on the radar and very close to Bee Final.
What are the plans for your company in the future?
Our company has crossed a turnover of ₹ 5000 million rupees, and we are focused on continuous growth. Our goal for next fiscal year is a growth rate of around 15 to 18 percent. Universal Sompo General Insurance plans to expand our car insurance, health insurance and commercial lines, while crop insurance has stabilized. Crop insurance used to contribute a significant portion to our premiums, reaching a maximum of around 70 percent five years ago. Last year, it fell to 25 percent and we hope that it will be reduced even more to 20 percent not because we are reducing crop insurance, but because we are cultivating other segments and health insurance. We are also making a strong focus on the sum sector, which we believe has great potential. On the health insurance side, we are working to achieve a 100 percent agreement without cash, which is currently 70 percent. We will continue to invest in technology in all our business lines, and we are waiting for the launch of Bima Sugam.