Cigna TTK Health Insurance Company Ltd., the latest to join the standalone health insurance segment in India, has gone in for a three-pronged pricing strategy to gain competitive edge.
With pricing dynamics proving to be much more sophisticated, the company has decided to view product pricing from the perspective of age, as opposed to the band-based pricing at the moment. Also, it has chosen to offer differential pricing for people living in different zones across the country. More importantly, the company has introduced a new element, that is, gender, into its pricing strategy.
In an interaction with this correspondent, Sandeep Patel, Managing Director and CEO of the joint venture company between the TTK Group and Cigna Corporation of the U.S., admitted that the public sector insurance companies were driving the change in the pricing parameters.
Improving the distribution efficiency, engaging with the hospitals, and inducing individuals to invest very early in insurance were the key challenges facing the health insurance industry in India, he said.
With medical inflation running at double-digit in India, at above 17 per cent, Mr. Patel said affordability had become very critical. So much so, “it (health) has come down to the level of financial risk,” he pointed out. The critical task, therefore, boiled down to making individuals understand that “it (health insurance) is not wasting money,” he pointed out. Cigna TTK, he said, was focussed on providing health maintenance benefits as well to clients. In fact, it had hit upon a heath and well-being programme for them, he pointed out.
Fielding a range of questions, he said the joint venture was confident of breaking even in 5-6 years.
