Insurance firms must cut premium charges in rural areas: PwC
HYDERABAD: Insurance companies must reduce premium charges and collection cost in order to penetrate in to rural and Below Poverty Line masses, global professional services firm PricewaterhouseCoopers (PwC) has said.
PwC said this in a report released here today on health insurance in India.
The report, jointly prepared by PwC India and India Health Progress - a healthcare communication consultant - made 12 recommendations for the sector penetration across groups.
"For penetration among the BPL category and rural sections, insurance premiums should be kept low and manageable. Over time and efficiencies can be achieved and costs lowered," Sujay Shetty, Leader-Pharmaceuticals and Life Sciences, PWC India, told reporters after releasing the report.
He said less than 15 per cent of India's population is covered under some form of health insurance, including Government-supported schemes. Only 2.2 per cent of the population is covered under private health insurance, of which rural health penetration is less than 10 per cent.
"Health Insurance is particularly critical for BPL people. This is because an illness is especially threatening for BPL families. Not only is it a threat to their income earning capacity, it could also result in the family falling in to a debt trap," Ranga Iyer, healthcare consultant, said.
The report calls for a new business model to cater to the demand for insurance products, considering Public-Private- Partnerships, outpatient coverage, creation of a credit bureau for reliable data and setting up a healthcare regulator.
PwC said this in a report released here today on health insurance in India.
The report, jointly prepared by PwC India and India Health Progress - a healthcare communication consultant - made 12 recommendations for the sector penetration across groups.
"For penetration among the BPL category and rural sections, insurance premiums should be kept low and manageable. Over time and efficiencies can be achieved and costs lowered," Sujay Shetty, Leader-Pharmaceuticals and Life Sciences, PWC India, told reporters after releasing the report.
He said less than 15 per cent of India's population is covered under some form of health insurance, including Government-supported schemes. Only 2.2 per cent of the population is covered under private health insurance, of which rural health penetration is less than 10 per cent.
"Health Insurance is particularly critical for BPL people. This is because an illness is especially threatening for BPL families. Not only is it a threat to their income earning capacity, it could also result in the family falling in to a debt trap," Ranga Iyer, healthcare consultant, said.
The report calls for a new business model to cater to the demand for insurance products, considering Public-Private- Partnerships, outpatient coverage, creation of a credit bureau for reliable data and setting up a healthcare regulator.
No comments:
Post a Comment