Premium Increase Expected
SBI General Insurance’s Chief Business Officer, Rakesh Kaul, announced that IRDAI’s decision to reduce the waiting period for pre-existing diseases in health insurance from four years to three, effective April 2024, will lead to a 10-20% increase in health insurance premiums. However, the company has not decided how much of this cost will be passed on to policyholders.
Impact on Pricing and Demand
Kaul emphasized that health insurance is a value-seeker market, not price-seeker, and the ability to customize products is key. Despite medical inflation of 7-8%, SBI General Insurance reviews rates every three years instead of annually.
New Products and Innovations
SBI General Insurance plans to launch new products every quarter, including a customizable health plan and a super top-up health cover. The company is focusing on increasing its individual health insurance business and has established a strategic business unit in Pune for health insurance underwriting and claims.
Technological Advancements
The insurer’s new technology platform and partner engagement tool, Simba, enable distributors to customize products independently. This innovation is expected to drive growth by tailoring products to different market segments and distribution channels.
