Wednesday, September 22, 2010

We knew it will not happen on Sep 17,2010

In the International Health Insurance Summit ( organised by CII)held on Sep. 9 & 10,2010 in one of the panel discussion attended by high ups of Health care providers /Insurance companies ( mainly PSU) it was agreed that agreement to resolve the PPN issue will be reached by Sep. 17,2010 .This is necessary so that inconvenience is not caused to policy holders ,who are suffering since July1,2010.

We knew this agreement will not be reached because gap in expectation by both parties is too much.Healthcare providers are ready to give a discount of 5 to 7% but this is not at all acceptable to PSU insurance companies.This issue has complication that if the Good/super specilaity hospitals agree to the need of PSU's they may have to give same terms to Private Insurance Companies.That will affect the financial projections of health care providers who have got funding from investors,banks,PE funds and VC funds.This may also bring down price of the share in the stock market and hence the wealth of the promoters.

Friday, September 17, 2010

Pvt companies to follow PSU's health insurance PPN package rates

Is it a cartel ?Is is competition?While the Indian customers are confused with what has happened since July 1,2010.We hear Pvt Insurance companies are also going to follow PPN pacage rates finalized by PSU's with hospitals in 4 metros.While customers were thinking of switching over to Pvt companies when the renewal will be due,this news is definitely a disheartening news .

Is it that PSU's acted as the leader and Pvt companies have been following them.

We understand premium products are going to be out -premium is going up.We were always of the view that premium should be always at the right level.Fix it at right level and treat the customer with respect ,which he/she deserves.

Saturday, September 4, 2010

Bajaj Allianz has also increased premium rates for Health Insurance

Bajaj Allianz has also increased premium rates for Health Insurance.

Sometime back Reliance General Insurance Co. Ltd. had increased the premium rates for health insurance.

Bajaj Allianz General Insurance Co. Ltd. has announced increased rates and with this, their rates are 20% higher than that of premium rates of Reliance General.

Let us see comparison of old rates vs. new rates of Bajaj Allianz for a family floater policy where the age of head of the family is 32.

Let us see the comparison of Bajaj Allianz rates with Reliance General/Max Bupa

You may be surprised to see increase of the order of 20% but I was expecting this to happen for quite sometime.

As mentioned earlier in one of my earlier blog no insurance company can go on losing money for a long time as ultimately the shareholders want return on their investment.

As the companies have started getting ready for IPO as well as to release / figures in press (every 6 months) / website (every 3 months) this was expected to happen.

We understand that PSU’s are also going to release new rates where they will call the product as premium product where cashless treatment in good hospitals will be permitted. We expect the rates to be at par with rate of Bajaj Allianz General Insurance Co. Ltd. Let us wait for the announcement.