ICICI Lombard to grow in healthcare business despite pandemic
- The largest private life insurance company said the company would continue to increase its health insurance portfolio amid the Covid-19 pandemic, claiming that penetration of the private Mediclaim in India was very low.
Speaking to reporters after the company's financial results statement for fiscal year 20, MD and CEO said the final impact would depend on several factors, including R0, which tracks how many people will become infected. He said that although the health insurance business is largely retained by insurers, meaning it is not backed by international reinsurance, domestic companies will continue to have the ability to continue to provide coverage even if cases cross a lakh due to low level of insurance penetration.
He said that while losses caused by a pandemic are not covered, hospitalization claims under individual health insurance policies will be paid. “The basic concept of insurance is the grouping of risks. We charge many policyholders to pay claims in rupees to a few. When a pandemic event it is impossible to have an insurance solution, he said.
According to Dasgupta, none of the companies in India has covered the loss of earnings for companies that arise without material damage. “In India as of now there is no harmless business interruption coverage. From now on, all profit loss policies cover losses from material damage, ”he said.
Dasgupta said the company had received a large number of travel insurance claims due to cancellations. He said that although the pandemic was an excluded risk under travel policies, the company has decided to honor the claims.
For the previous financial year ending March 2020, the company reported a 23.8% increase in net profit compared to Rs 282 crore in March 2019. This was despite the fact that the total premium income of the The company dropped 8% to Rs 13,313 crore after its decision to exit the loss - manufacturing crop insurance. If the crop business from the previous year were excluded, the growth would have been 10%