Bharti Axa General Insurance Company is planning to increase its focus on the health insurance segment. Healthcare costs have spiraled and will continue to increase from the current levels. This could be the reason why Bharti Axa is focusing on health insurance products.
According to Kimsoon Chua, COO of Bharti Axa, the company has laid out aggressive plans to reach Tier 1 and Tier 2 cities. The company would set up simple one-person offices in close to 100 touchpoints to reach out to the masses. Such a strategy could help it reach a larger volume of people in a shorter period of time as the setup of full-scale branches is a time-consuming and expensive affair.
It will be interesting to see the effect of such a strategy, but the market definitely is there to be taken. Even in Tier 1 and Tier 2 cities, the costs of hospitalization have increased substantially and access to good facilities can burn a hole in anyone’s pocket.
The health insurance market is competitive with low pricing being offered to increase market share. Given that health insurance products are usually one-year products, companies resort to low premiums to attract customers in the hope of retaining them.
