GI Council charts a path for accessible, affordable 'Health Insurance for All'

In a significant development, the General Insurance Council (GI Council) met in Mumbai on May 6, 2024, introducing a transformative wave in India's health insurance landscape. Spearheaded by the Insurance Regulatory and Development Authority of India (IRDAI), the GI Council highlighted a comprehensive set of initiatives that have led to positive outcomes or have set the groundwork for redefining health insurance's pivotal role in ensuring financial security nationwide.

With health insurance constituting a substantial 38% share of the insurance market, the GI Council reiterated its commitment to fostering societal well-being through the promotion of accessible, affordable, and high-quality health insurance products and services.

Emphasizing the pivotal role of health insurance in mitigating the financial burden of healthcare expenses, the council, in a statement released on Monday, underscored its dedication to nurturing societal prosperity with empathy and care, the industry body said in a statement.

During the conference, the GI Council divulged several key performance indicators reflecting the impact of its initiatives:

> As per the council's data, the health insurance sector witnessed a commendable premium intake, nearing Rs 1 lakh crores in the fiscal year 2024, reflecting an impressive compound annual growth rate (CAGR) of 20%.

> Over 50 crore citizens are now benefiting from health insurance coverage, aligning with the ambitious target of "Insurance for All by 2047" set forth by the IRDAI chairman.

> The 'Cashless Everywhere' initiative has revolutionized access to healthcare by enabling policyholders to avail cashless treatment at any hospital nationwide. Presently, over 40,000 hospitals are integrated into various insurance networks, enhancing accessibility and convenience for all citizens.

> In the FY23, the industry settled claims exceeding Rs 75,000 crores, catering to over 2.5 crore claims. With more than 60% of claims settled on a cashless basis and streamlined processes in place, the GI Council is steadfast in its commitment to ensuring friction-free claim settlements for policyholders, it said.

> Spearheading initiatives such as customized products for senior citizens, simplified policy wordings, and collaborations with hospitals and stakeholders, the council is dedicated to making health insurance more accessible and user-friendly, it added.

> The IRDAI's progressive reforms have significantly bolstered health insurance coverage and clarity, instilling greater confidence among consumers. Simplified definitions of pre-existing conditions, reduced waiting periods, and assured policy renewals are among the key reforms driving accessibility and transparency in health insurance.

> Targeting underserved regions, the industry is focused on reducing the protection gap and enhancing insurance access through rural and social targets. Initiatives like Bima Vistaar, Bima Vahaks, and Bima Sugam aim to extend insurance coverage to every segment of society.

> With a collective effort to identify and eliminate fraudulent practices, the industry is poised to enhance trust and streamline claim settlements. Here, the 'Cashless Everywhere' initiative is again expected to set new benchmarks for quick, hassle-free settlements, while fostering greater confidence in the health insurance ecosystem.

In a statement, Tapan Singhel, Chairman of the General Insurance Council, reiterated the council's unwavering commitment to making health insurance a key enabler of societal well-being. He emphasized the council's dedication to fostering collaboration among insurers, regulators, ministries, and fintech to ensure affordable, accessible, and comprehensible healthcare for every citizen.

"A lot has already been achieved and we firmly believe we are on the right path to completely revolutionize the way health insurance is perceived. The aim is to alleviate concerns and simplify the lives of people, ensuring that they have the confidence and support they need to secure their health needs," he said.