INDIA EXAMINES RISK POOL FOR ELDERLY HEALTH INSURANCE

India’s Insurance and Regulatory and Development Authority (Irda) is examining proposals to establish a third party risk pool to provide cover for healthcare policies for the elderly. The suggestion comes shortly after the announcement of India’s budget, in which the government attempted to increase the adoption of healthcare insurance by introducing income tax deduction on medical insurance premiums and it is Irda’s belief that adopting a risk pool for senior citizens will also help to boost adoption levels. Industry estimates have the current claim ratio for healthcare insurance at 300%, a figure that has sent insurers scurrying from the sector and those that have remained have charged policyholders at prohibitively high rates to ward against potential losses. A third party risk pool for the auto insurance sector has proved to be relatively successful in attracting more private insurers and it is Irda’s hope that this success can be repeated in the healthcare sector.