Interview with Mr. Antony Jacob CEO, Apollo Munich Health Insurance with Insurance Times
1.What is health insurance portability?
Health insurance portability empowers customers to port their existing health insurance policies to another insurer. The customers willing to move away from their existing insurer have been given the privilege to transfer the credit gained by the insured for pre existing condition and time bound exclusions, provided the previous policy is without a break.
2.What is the process of portability?
When a customer wishes to port his existing health insurance policy from one insurer to another, he or she must fill and submit the proposal form of the incumbent insurer, along with the standardized portability form available with each insurer.
On receiving a request for portability, the incumbent insurer would underwrite as per their guidelines. The new insurer would then inform the customer on its decision within a stipulated time frame for the customer to take their informed decision.
With the best intention to avoid any lapses in coverage, we recommend all consumers willing to port, to place such requests with the insurance company (the proposal to reach the insurance company) of their choice at least 45 days prior to the renewal date.
In addition to this, customers should keep in mind that every policy is different and each insurance company is governed by their underwriting principles. Hence, they should choose the one they deem fit. It is important for the customer to completely understand the benefits as offered under their existing policy, and subsequently match them with the plan that they wish to port to.
3.How this health insurance portability shall benefit customers?
Portability is a customer centric decision that allows customers to switch insurers and simultaneously protect their accrued benefits under a health insurance policy. This shall enable customer protection against discontinuity and consequential loss of pre-existing diseases cover. The move will call for minimum service requirements amongst all insurance players.
4.How advantageous will this be for your company?
At Apollo Munich we believe portability is a customer centric move. It would provide flexibility to the insured member to choose between insurance brands during the lifespan of being insured. The development will call for minimum service requirements amongst all insurance players. On the other hand, it is expected to bring in new benchmarks in terms of service standards and delivery mechanisms for the insurance players. In the long run, it would be the company with the better services and integrity that would stand to gain.
However, at Apollo Munich we have always been mindful of the market need. In the case of portability we have stayed ahead of the curve to offer portability of benefits with our Easy Health and Maxima policies since inception.
5.Has there been any change in the policy terms and condition relating to portability?
There is a need for all players to work closely with each other, as well as, the regulator for facilitating portability within a stipulated time. The same would demand a greater level of interaction and sharing of data among the players.
Every policy is governed by its underwriting principles which differ from product to product and insurer to insurer.
All proposals for portability will be treated as a new proposal and will be validated as per the underwriting guidelines of our company. The incumbent insurer would reserve the right to accept, reject or load a particular proposal.
6.How you view the health insurance market in India?
The insurance sector in India has come a full circle from being an open competitive market to nationalization and back to a liberalized market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries. The sector is poised to have an accelerated growth curve in the years to come.
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The health care spend in India is expected to double (and touch Rs. 2,250 billion) by 2014. With time we have become more prone to lifestyle related ailments and diseases than previous generations. This fact, undoubtedly negative, stands as the root cause for the potential growth of the health insurance sector.
Since the benefit of holding a health insurance policy is no longer a debatable topic, addressing the enhanced consumers’ knowledge and attention to detail is the need of the hour. Collective efforts from all companies are necessary to take insurance to consumers and grow the insurance coverage beyond the 11 per cent that are covered at present in the top eight cities only.
7.What has been the performance of your company and what is your target in this fiscal?
Apollo Munich has completed four years of operations and in these four years has successfully insured well over 3 million lives across India. Our initial year has been a great success for our brand and company as whole. FY 2010-11 has also been a growth story for us.
The financial year 2010-11 ended with the GWP of Rs. 283 crores which is 139% growth over the financial year 2009-10. The current financial year (2011-12) also promises to maintain the growth momentum and we should be close to Rs. 450 Cr by the end of March 31st 2012.
Currently, Apollo Munich reaches its customers through over 25,000 sales agents, strong direct sales force, an online sales platform and through valued distribution partners. Headquartered at Gurgaon, Apollo Munich has its presence across 30 cities with 53 offices.
At Apollo Munich Health, we are deeply committed to grow at least 25 per cent year on year for the next few years. We hope to uncomplicate people lives by giving them better healthcare and innovative products.
