Iinsurers expect health insurance portability (HIP) ? which came into force from Sunday? to be a game-changer in the R10,000-crore domestic health insurance industry. According to the general insurers, health insurance portability, though more complex than mobile number portability, is likely to see a greater response.
Neeraj Basur, CFO, Max Bupa Health Insurance, said: ?Yes, the industry is likely to witness some migration as HIP allows policyholders, locked in their existing health insurance policies, to evaluate other options, without fearing the loss of benefits for the waiting period served with their existing insurer.?
Health insurance portability is more complex than telecom portability because of the nature of the product and the information sharing that it is involved between the existing insurer, the customer and the new insurer, explained Basur.
?It may be premature to predict a trend at this point in time on the response from the existing customers, but we believe that portability is a customer-centric decision. The guidelines on portability have been laid down to allow flexibility to the customers in choosing between insurance brands during the lifespan of being insured. The new regulation is applicable for all sum insured options existing in the market,? said Antony Jacob, CEO, Apollo Munich Health Insurance.
?If the customer perceives a gap between what is promised and what is delivered by an insurance company in terms of service or benefits, he or she can opt for a similar plan with other insurer of his or her choice at the same sum insured level,? said Anthony. J Harinarayan, chairman, IRDA, said HIP will help a policyholder to move to another insurer if he is not satisifed with his current company or finds that he he can avail more benefits elsewhere.
Jacob, on the other hand, maintained the move will raise service standards and see increased competition among insurers to retain their existing customers. ?The regulation is expected to bring in new benchmarks in terms of service standards and delivery mechanisms for the insurance players. In the long run, a company with better services will gain the trust of customers,?? said Jacob. Sanjay Datta, head, customer service, health and motor, ICICI Lombard General Insurance, said a common data sharing platform will help all insurers access information pertaining to portability.
