Cholamandalam MS General Insurance Co Ltd (Chola MS), a joint venture between the Murugappa Group and the Mitsui Sumitomo Group (Japan), seeks to strengthen its focus on the retail health insurance business with the launch of new products soon.
“With the new product framework now in place, we plan to introduce new products targeting various segments, including women’s health, in the coming months,” said V Suryanarayanan, Managing Director of Chola MS.
He acknowledged that standalone health insurance (SAHI) players have experienced higher growth rates compared to multiline insurers like Cholamandalam. While SAHI companies have been growing at 24-25 per cent, multiline players have seen growth rates of 12-13 per cent in retail health.
The retail health segment experienced robust growth of 18.5 per cent, driven by a 24.2 per cent increase for SAHI players, while private insurers grew by 13.5 per cent in Q1 FY25. The Group Health segment saw a slight moderation in growth at 15.4 per cent, with SAHI firms growing at 28.7 per cent and private multiline players at 22.2 per cent, according to a report by Emkay Global Financial Services.
In Q1 FY25, the health segment accounted for 41 per cent of the overall gross written premium income (GDPI) mix. Retail health made up about 14 per cent, while group health comprised 27 per cent.
“SAHI firms have been leading in growth within the retail space. To diversify our business lines, we will focus more on health and commercial lines of business, reducing our dependence on motor insurance,” said Suryanarayanan.
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In the first quarter of this fiscal year, the health segment accounted for about 15 per cent of Chola’s total business. Within the health portfolio, retail health represented 7.5 per cent, while group health was slightly higher at 7.5 per cent. Motor insurance remained the largest category at about 60 per cent.
Suryanarayanan highlighted that recent pro-customer amendments by the insurance industry regulator IRDAI make it an opportune time for people, particularly those over 30 years, to secure health insurance if they haven’t already.
Explaining the new amendments, he noted that cashless services are now available in any registered hospital, not just network hospitals. The maximum waiting period for pre-existing conditions has been reduced from four years to three years, and the claim rejection process has been clearly defined. Insurers must now obtain approval from the Claim Review Committee to reject a claim.
Additionally, the moratorium period has been reduced from eight years to five years. So, insurers cannot question claims due to non-disclosure after five years of continuous policy renewal, he added.