Key Points
- Anup Rau wants the GST on health insurance premiums to be waived.
- Recent changes in rules have helped the general insurance sector.
- Current motor third-party premium rates need to be updated.
- Health insurance premiums are rising because of higher costs.
- Insurance companies are more focused on managing assets than on making money from underwriting.
- Many people stick with their current health insurance instead of switching, which makes portability tough.
Looma News
In a recent interview, Anup Rau, the Managing Director and CEO of Future Generali India Insurance, talked about how India’s general insurance industry is changing due to new rules. He noted that the insurance regulator has been supportive, helping companies to comply more easily and sparking innovation, which has led to growth.
Rau stressed that the government’s help is crucial, especially when it comes to the GST on health insurance. He argued that removing the 18% GST would make insurance cheaper and encourage more people to get covered, which would take some pressure off the government’s healthcare system. He also mentioned that motor third-party rates haven’t changed in five years and need to be looked at.
He acknowledged that the government is hesitant to cut the GST since it’s a major source of revenue. However, he suggested that moving more healthcare coverage to the private sector could lead to better results, similar to what has happened in the telecom industry.
When discussing the rise in health cover premiums, Rau pointed to the increasing costs of hospitals and higher average coverage amounts as key reasons. While competition in the insurance market helps keep prices in check, he mentioned that many in the industry see general insurance primarily as a way to manage investments, not just to make money from underwriting.
Rau also talked about health insurance portability, noting that many customers hesitate to switch providers, even if they find better deals, because they are comfortable with their current insurer. Finally, he remarked on the drop in initial public offerings (IPOs) from insurance companies, suggesting that the current market isn’t great for launching new public offerings.
