People want wellness benefits, mental health support in health insurance policy: Future Generali COO – Economic Times

After the pandemic, there has been a rise in health insurance awareness, particularly among younger people, who want all-inclusive, sizeable plans of Rs 15-20 lakh, the Deepak Prasad, Chief Operating Officer, Future Generali India Insurance tells ET Wealth.

What’s your take on the insurance regulator, Irdai’s proposal to increase third party premium rates for private cars and two-wheelers?
We have to follow the guidelines stipulated by the regulator and don’t have much of a say in it, but only time will decide whether these rates will be able to take care of the high losses. More importantly, the third party court rulings have spiralled and are no longer what they used to be 4-5 years ago. So, we will have to see how it figures out in due course of time.

What was the intent behind the launch of your recent ‘Gift of Health’ product?

We strongly believe in innovation to bring out the right insurance solutions for the customer. As per the Irdai sandbox guidelines, insurers have the opportunity to come out with new products. ‘Gift of Health’ is a scheme designed to secure the health of those who matter to you. You can gift it to your domestic help, friends, family, even NGO members. It has the options to cover hospital cost, or accidental expenses, or both.

Given the underpenetration of health insurance and people’s reluctance to buy it for themselves, do you think they will gift it to others?
We have recently launched a pet insurance product, which has received a tremendous response. If one can think so much about the pet, why not their blood relations? Besides, after the pandemic, the penetration has increased, especially in health insurance.

Do you think there is a big enough market for pet insurance in the country?

There are more than 3 million pets in the country and, of this, 80-85% are dogs, and their cost of maintenance is pretty high. Insurance, anyway, is a push product in India and we will have to create awareness that a pet is also a member of the family. If you can insure your own and your parents’ lives, why not the life of another member of your family? It is largely a metro product and we will start with metros and tier 1 cities, before going to tier 2/3 cities.

How has the pandemic changed health insurance for Future Generali?

India ranks among the top three countries hit worst by the pandemic. This health crisis has resulted in a very high medical inflation, and more and more people are considering health insurance to be as essential as other necessities for survival. In a country where penetration was below 4% in pre-Covid times, this is a major change in the market. In addition to the basic health insurance products, consumers are also looking for all-inclusive plans, including wellness benefits and mental health support.

The increasing awareness of people’s insurance needs has also led to better products and faster claim settlement, shorter waiting periods and no sub-limit policies. Premium payments are now possible in monthly instalments, and cashless procedures are being implemented more and more. We are seeing a phenomenal change in approach, particularly towards millennials. For instance, they are constantly being targeted for products through digital mode that are innovative and offer benefits such as coverage of OPD and home health care which does not require hospitalisation.

Most importantly, somebody who was covered for Rs 1 lakh is now asking for a Rs 3 lakh cover, and those with a Rs 3 lakh cover are asking for a Rs 5 lakh cover due to high medical inflation. Another change is that before the pandemic, people were happy with the cover provided by the employer. Now, the young population keeps changing jobs, and so they want an independent and sizeable health insurance of not less than Rs 15-20 lakh.

How have the underwriting rules changed due to the pandemic?

There is adoption of new techniques like tele-underwriting. Gone are the days when people were asked to fill up forms. Everything is now done through telephone, mail or app. To cope with the pandemic-led situation, digitalisation and other processes like e-proposal forms were introduced. Awareness and approach towards well-being gained significant attention. As a result, more and more people are now considering fitness and wellness programs as necessary for survival and improving the quality of life.

People with pre-existing mental illnesses are finding it hard to get a cover. Will these products undergo changes like reduction in waiting period for pre-existing illnesses as is the case with basic health plans?
I don’t see why these should not, but it will come at a price and people should be willing to pay that price. It’s a niche product and will take time. People don’t realise that depression, not cancer or Covid, is the number one killer. We hope they will start buying the product at an early age so that they don’t face difficulty in doing so after contracting the illness.

Has online become the prime channel for distribution after Covid or do traditional channels still retain their hold?

As many as 70% of policies are now being sold online. Our field sales staff also moves around with tabs and I wouldn’t be surprised if going forward we are 90% digital in almost all the major cities.

Will the Future group’s plan to exit have an impact on the company’s operations?

There will be no impact because the company was anyway run by the local management. Future and Generali were both shareholders, and the management had complete freedom to run the company. We are one of the very few profitable insurers in the country. What will perhaps change is the constitution of the board, with more representation from Generali as they will have a 24% stake, and independent directors as per the law. There will be no change in the functioning of the company.

What are the future plans of the company?

We will focus on profitable growth. It will not be growth without profitability or only profitability without growth. We are in the top 10 now and, going forward, would like to be in top 5 or top 3. We are investing a lot in improving IT support and infrastructure. We would also like to retain our renewal ratio under commercial line of business, that is corporate business, close to 96%, and retail close to 70%. Then we would like to grow with them and our new customers.