Mumbai, Aug 25 (PTI) ICICI Prudential Life said it’s keen to re-enter medical insurance vertical as there’s “nothing latest” within the business for the corporate which had been within the segment for a few years till 2016.
Insurance regulator Irdai had in 2016 banned life insurers from selling pure-play health policies which might be annually renewed or sold with one-year validity.
Also Read | Google Play Purged Over 2k Controversial Personal Loan Apps in India This 12 months.
Recently, Iradi chairman Debasish Panda hinted at allowing more players into medical insurance segment as a way to ensure medical cover for each citizen by 2030. Nonetheless, the Irdai chairman clarified that he’s evaluating the professionals and cons of allowing life insurers to sell medical insurance and that a call is yet to be taken on the matter.
Before the blanket ban imposed by the regulator, ICICI Prudential Life had a big customer base within the medical insurance segment. Following the regulatory restriction, the life insurer helped numerous its customers port out their plans. Nonetheless, over 2.6 lakh policyholders didn’t port they usually are still being serviced by it, a top company official has said.
Also Read | Poco M5 4G Confirmed To Come With MediaTek Helio G99 SoC.
“The regulator had stopped us from selling latest health policies in 2016 after we were very lively within the segment. Since we all know the business well there may be nothing latest in it for us and so we’re keen to re-enter this segment as and when the regulatory ban is lifted. In any case health and life go perfectly well and globally that is allowed,” N S Kannan, managing director and chief executive at ICICI Prudential Life, told PTI in a recent interview.
Indemnity-based mediclaim policies are the best-selling health policies within the country. Nonetheless, since 2016 life insurers have been allowed to supply only fixed profit health plans.
After the comment from the Irdai chairman, a variety of life insurers, including LIC, HDFC Life and Indiafirst Life, have said they’re keen to re-enter the segment.
At present, there are 24.50 lakh life insurance agents within the country but there are only 3.60 lakh agents normally and medical insurance category.
If life insurers are allowed to enter medical insurance business, the variety of agents is prone to rise by 600 per cent, which can result in increased medical insurance penetration within the country.
Meanwhile, Kannan expressed confidence that ICICI Prudential Life will comfortably meet its goal of doubling the Value of Recent Business (VNB) to Rs 2,560 crore by this fiscal. The corporate’s VNB stood at Rs 1,328 crore in FY19.
His optimism stems from the much-anticipated VNB growth clocked in the primary quarter at Rs 471 crore, which was greater than 31.7 per cent from Rs 358 crore within the year-ago period.
VNB is a key profitability metric within the life insurance industry. It indicates the long run profit of a life policy written now.
(That is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)