Break-even in next 3-4 yrs, says CEO Mishra
The standalone health insurer expects break-even in three-to-four years from now, Mishra told Business Line in an interview here. “I don’t want to get into numbers (growth aspiration) because we are substantial part of a listed company. It is safe to assume that we will grow 2-3 times the industry rate. Last fiscal, the health insurance industry grew 15 per cent”, he said.
Max Bupa Health Insurance started its journey four years ago and a break-even target of eight years is consistent with a similar period eyed by most private life insurers.
The health insurer, which has a market share of 8.4 per cent in private medical insurance, had recorded 50 per cent growth in its GWP last fiscal, Mishra said.
Plans are afoot to continue its focus on family-based products, which accounted for over 70 per cent of its revenues last fiscal. “We are all about the family”, Mishra said, recalling how the company sold one policy to cover a family of 100 people in Chennai last year.
On competition, Mishra said he does not feel the heat from newer players entering the market as the penetration levels of health insurance in India are low. “Our industry is still very small. It needs to grow faster. I believe the category should expand. It is not about winning the market from each other, it is about growing the market. The existing benign regulatory environment should help”.
As an industry, there is a need to create more awareness as cost of medical care is much higher and is becoming a significant factor, he said, adding “I welcome more competition. General insurers are also becoming serious about health insurance which is a good thing”.
It is estimated that an Indian’s out-of-pocket spending (own money) for healthcare is as high as 70 per cent.
But, people still have to be “nudged” into buying health insurance even as the force of nudge had reduced in recent years, Mishra said. Business Line
