Is Consolidation process on in health Insurance?

Understand HDFC Ergo is near to close its deal with Apollo Munich. We are aware of that Ergo and Munich Re are brands of the same German group. 

The questions before us are - After the deal is through

• Will Apollo Munich remain a separate company?
•  Will it be merged with HDFC Ergo?

You should not be surprised if  Health portfolio of HDFC Ergo is merged with Apollo Munich Insurance which is 100% health Insurance Company and has built up expertise in the Health portfolio over many years.

We are sure the name of Apollo will be dropped out of the brand and HDFC Munich Health Insurance comes before us as a new Brand.  Let us wait and watch.

ttk is moving out of Cigna ttk as the equity is being sold to Manipal Hospital Group.

At the same time we are hearing about merger of Oriental, National and United. If the merger takes place, then this will also be a major change. We foresee Health portfolio of 4 PSU's getting under one banner. One thing is sure that Health Insurance Portfolio is going to increase and increase.

With fewer exclusions, why health insurance premium should increase?

In the recent months Government/ Regulator has been moving in the direction of reducing exclusions in Health Insurance Policy. I found it interesting to read the viewpoint of leading persons in the country in Mint Newspaper:

• Mr. S. Brahmajosyula (head, underwriting and reinsurance) SBI General Insurance
• Mr. G. S Batra (head,retail underwriting) bajaj Allianze General Insurance
• Mr. Tarun Mathur (Chief, business officer, general insurance) policybazaar.com
• Mr. Ravi Vishwanath (executive Director and chief executive officer) reliance Health Insurance.

Indications are that due to reduction of exclusions the industry is in a mood or is considering to increase the premium.

Are we not ignoring the fact that reduction in exclusions will result in increase in customer base as more customers will buy this product. As the number of policy holders increases the benefit should be passed on them.

Various factors are stopping us from increase in premium as this will result is retarding the growth of health insurance. Reduction of Fixed Deposit interest rate has affected many senior citizens and has compelled them to either reduce sum assured in the policy or even let the policy lapse.

It is our right to expect from Finance Minister that GST on health insurance policy be reduced or why not be brought to 0%.

50 Crores families will benefit from Ayushman with majority funding coming from Government. Then  4 Crores families who buy Health Insurance out of their own pocket or savings –Government should  support them with GST at 0%or say 5%  on Health insurance.

If you are convinced with this view point then take initiative of writing your demand to Finance Minister as her office has started working on the Budget. I am sure hon’ble Minister will definitely respond to 25000 letters.