Health Insurance in India, JUST TIP OF THE ICEBERG!

Currently, Gaurav is also the Chairman of the General Insurance Committee of Bombay Chamber of Commerce and the Claims Committee of the Indian Motor Pool. Additionally, he has been a guest lecturer at GE Global Learning Center, University of Connecticut for their leadership programs and has been an active participant at the Manhattan Round Table.

In 2000, he joined AIG India as Country Head – Personal Lines and was a part of the start-up team that launched Tata AIG in India. Ever since he never looked back and went on to Head, Field Operations – Personal Lines at AIG New York in 2004, where he was responsible for six regions globally (namely Europe, CE/CIS, Mediterranean, Middle East & South East Asia and Australasia Regions).

Gaurav Garg, MD & CEO, Tata AIG General Insurance Co. in an exclusive conversation with Harsh Roongta and Bienu Vaghela of ApnaPaisa.

How do you see the future of health insurance in India with the short and long-term perspective? What roles do you perceive for TATA AIG?

Health insurance is the fastest growing insurance segment today. Looking at the numbers, you will find that impact of the economic slowdown has not been felt as much by health as by other sectors. A huge latent demand for health insurance in India is anticipated. In the absence of social security network or inadequate Government backed health care, people have to provide for their own health care. With the advancement of health care, the costs are also going up, and almost all kinds of latest treatments and procedures are available in India. Besides, people have become more conscious of their health nowadays. These are the few reasons, which have made people move towards Health insurance, but it is just tip of the iceberg.

But we notice this movement of demand in the people who are aware, which is basically the urban population. India is 65% rural and there also health care is a requirement. The Government is pumping lot of money into the healthcare business through Government aided programs, which is a big step in the development of healthcare.

On the other hand, arrival of health institutes like Apollo, Wockhardt or Ambanis leading to corporatization of health care, will eventually give rise to demand of health insurance. Slowly we are progressing towards managed healthcare, which will gradually lead to individual health care.

You took up interesting topic of health care but I think there is a big disconnect among consumers of health care and the health care providers?

Health care industry would have been far bigger if health care reforms had taken place in India. Premiums haven’t come down as yet, moreover there is general perception that if one has cashless policy he will be charged more and this is because health care industry hasn’t been able to force reforms.

Let me add here that right now from the health insurance standpoint, it is in a very nascent stage of development whereas in western markets, health insurance is a specialized form of insurance. The MNCs have managed two kinds of healthcare system – within the network and outside the network. This is going to happen in India also. Now you have co- pay provision if one decides to go outside the network. But even in the network, the insurance industry does not yield that kind of power. This can only happen once healthcare insurance is managed/ organized. In Western countries there is governance on the health care system hence the Government has to constructively think about it.