Interview with The Economic Times Wealth: 68% Retail Health Growth By CEO Rakesh Jain

Published By: The Ecnomic Times​

Published Date: 03-07-2023

In an interview with Riju Mehta of The Economic Times Wealth, Rakesh Jain, CEO of Reliance General Insurance, highlights the remarkable 68% growth in retail health insurance, which has outpaced all other segments. The average sum insured has increased from ₹4 lakh to ₹7 lakh over the past two years.

Jain identifies the need for standardied health insurance products, noting that customers have varied psychologies when purchasing first-time insurance. Some prefer basic coverage, while others seek customised plans. He emphasises that despite standardisation efforts, personalised health insurance remains important. Regarding commission caps, Jain explains that before IRDAI's intervention, agents earned 15-20% commission in the first year and 5-10% in renewals. With standardised products like two-wheeler policies, distributors received flat percentage commissions, limiting interest in customer retention.

Jain observes significant changes in health insurance purchasing patterns post-COVID. Retail health grew 68% higher than other segments last year, with average retail premiums rising from ₹20,000 to ₹30,000. This growth stems from increased health risk awareness.

Jain explains that high medical inflation results from new drugs, procedures and improvements in hospital quality. He emphasises that insurance companies aren't profiting from health insurance; they're covering hospital and laboratory costs.

Regarding hospital costs regulation, Jain acknowledges the limited scope currently but hopes hospitals will become more transparent. Insurance companies are working to standardise treatment costs, expecting hospitals to display rates prominently.

Regarding policy lapses, Jain notes that typical claimants are people who haven't filed claims or discussed processes beforehand. To address this, Reliance offers digital claim processes, SMS claim renewals and convenient payment options to prevent lapses.