Mumbai: ICICI Prudential Life stated it’s eager to re-enter the medical health insurance vertical as there’s “nothing new” within the enterprise for the corporate which had been within the section for a few years until 2016. Insurance coverage regulator Irdai had in 2016 banned life insurers from promoting pure-play well being insurance policies which are yearly renewed or offered with one-year validity.
Not too long ago, Iradi chairman Debasish Panda hinted at permitting extra gamers into medical health insurance section with a purpose to guarantee medical cowl for each citizen by 2030. Nonetheless, the Irdai chairman clarified that he’s evaluating the professionals and cons of permitting life insurers to promote medical health insurance and {that a} determination is but to be taken on the matter.
Earlier than the blanket ban imposed by the regulator, ICICI Prudential Life had a big buyer base within the medical health insurance section. Following the regulatory restriction, the life insurer helped numerous its prospects port out their plans. Nonetheless, over 2.6 lakh policyholders didn’t port and they’re nonetheless being serviced by it, a high firm official has stated.
“The regulator had stopped us from promoting new well being insurance policies in 2016 after we had been very lively within the section. Since we all know the enterprise properly there may be nothing new in it for us and so we’re eager to re-enter this section as and when the regulatory ban is lifted. In spite of everything well being and life go completely properly and globally that is allowed,” N S Kannan, managing director and chief govt at ICICI Prudential Life, advised PTI in a current interview.
Indemnity-based mediclaim insurance policies are the best-selling well being insurance policies within the nation. Nonetheless, since 2016 life insurers have been allowed to supply solely mounted profit well being plans.
After the remark from the Irdai chairman, a lot of life insurers, together with LIC, HDFC Life and Indiafirst Life, have stated they’re eager to re-enter the section.
At current, there are 24.50 lakh life insurance coverage brokers within the nation however there are solely 3.60 lakh brokers normally and medical health insurance class.
If life insurers are allowed to enter medical health insurance enterprise, the variety of brokers is prone to rise by 600 per cent, which can result in elevated medical health insurance penetration within the nation.
In the meantime, Kannan expressed confidence that ICICI Prudential Life will comfortably meet its goal of doubling the Worth of New Enterprise (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 progress clocked within the first quarter at Rs 471 crore, which was greater than 31.7 per cent from Rs 358 crore within the year-ago interval.
VNB is a key profitability metric within the life insurance coverage trade. It signifies the long run revenue of a life coverage written now.