ICICI Lombard releases Health and Motor Insurance trends for 2013

India Infoline News Service | Mumbai |

The year 2013 saw the industry take initiatives across the product portfolio that resulted in the sector registering sizeable growth despite prevailing macro headwinds

ICICI Lombard General Insurance, India’s largest private sector insurance company, has released the key trends for 2013 and its outlook for 2014 for the Health and Motor insurance segments.
 
Commenting on the occasion, Sanjay Datta, Chief – Underwriting and Claims, ICICI Lombard General Insurance said: ‘Being the largest private sector General insurance company, we believe it is imperative for ICICI Lombard to be ahead of the industry curve in terms of identifying consumer trends and imbibing the same in our product and customer service proposition. The year 2013 saw the industry take initiatives across the product portfolio that resulted in the sector registering sizeable growth despite prevailing macro headwinds.”
 
Some of the key insights and outlook shared include:
 
Health Insurance
Disease pattern is shifting towards non-communicable diseases e.g.  Neoplasms (Cancer), 11% in 2013-14 compared to 8% in 2009-10

Higher growth in medical inflation related to reimbursement cases (12% in 2012-13 compared to 10.2% in 2011-12). Cashless cases witnessed limited rise in costs due to efficient network management

Cashless route adopted by customers for high cost treatments

30% Medical Cases treated at Tertiary hospitals – resulting in higher treatment costs

Among the key trends likely to emerge/ strengthen in 2014 include:
Employer sponsored health insurance cover will continue to rise

Focus on OPD in line with changing customer trends and emergence of shorter duration treatments (one day stay/ same day discharge)

Preferred Provider Network to gain prominence

Motor Insurance
Turn-around in Petrol: Diesel car sales in Small & Mid size cars. Petrol cars witnessed positive shift of 7% in Q1 – FY 2013-14

Amid slowdown, Two wheelers (3 – 4%) and Pre-owned cars (20%) witnessed high growth this year

 Motor Insurance bucked the industry decline trend led by increase in liability premium and launch of new add-on covers

Add-on covers gained traction in 2013 (50% new cars sold with Add-on covers)

Zero depreciation, Road Side Assistance, Return to Invoice witnessed high consumer demand

Among the key trends likely to emerge/ strengthen in 2014 include:
SUV, High end Two wheelers and LCV will drive growth in the Auto segment in 2014

Industry focus will persist on specific Add-on covers

Road Side Assistance, Engine Protect, Voluntary Deductible

Improvement in claims settlement process time: 87% cases settled within one month (FY 2012-13) compared to 90% in FY 2013-14 (Apr – Sept)

Commenting on the outlook for 2014, Mr. Sanjay Datta said “We believe that the year 2014 would be better in terms of growth across the health and motor insurance segment. Apart from macro economic factors, the industry is poised to enhance its value proposition across the product and service spectrum. It should be an exciting year for Health and Motor insurance customers.”
 

 

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