Tata AIA Life Insurance, a prominent player in the insurance industry, is actively exploring opportunities to expand its presence in the health insurance sector. The company aims to offer short-term health insurance and indemnity plans if the Insurance Regulatory and Development Authority of India’s (Irdai) proposal to grant composite licenses for life and non-life policies is implemented.
At present, Tata AIA primarily provides long-term health covers with fixed benefits. However, the company is eager to venture into the domain of short-term health insurance, particularly indemnity plans that offer comprehensive coverage. Naveen Tahilyani, the Managing Director and CEO of Tata AIA, expressed the company’s keen interest in exploring this avenue. He stated, “We are very keen to do health. If we can do short-term health, indemnity in particular, we would be very keen to do that. As a life company, we can already do longer-term health with fixed benefits, and this year we will do more of that.”
Tahilyani also highlighted the potential for value-added services that Tata AIA could provide if the regulatory landscape evolves. One such service is the company’s ‘vitality’ program, which is designed to enhance policyholders’ overall health and well-being. Tahilyani explained that if the laws governing insurance licenses were amended, Tata AIA could integrate this program with its life insurance products. Additionally, he mentioned other existing services, such as a personal care management service provided by Medix, which offers consultation with renowned doctors worldwide. The company also offers teleconsultation with doctors through Practo on select products.
Tata AIA has witnessed remarkable progress in recent years, solidifying its position in the insurance market. After slipping to the 17th rank among insurers a decade ago, the company has successfully climbed the ranks and now stands among the top five insurers in terms of retail annualized premium earnings (APE) in FY23. Tahilyani proudly stated, “In terms of retail APE, we have climbed to the third spot.” He attributed this achievement to Tata AIA’s strategic focus on protection-oriented products.
The company’s commitment to protecting its customers through comprehensive insurance coverage has played a crucial role in its resurgence. Tata AIA’s emphasis on long-term health covers with fixed benefits has garnered favorable attention from policyholders. However, the potential inclusion of short-term health insurance and indemnity plans would further enhance the company’s product portfolio and cater to a wider range of customer needs.
Tata AIA’s proactive approach to adapting to regulatory changes and exploring new avenues aligns with its vision of providing innovative and comprehensive insurance solutions. As the company continues to prioritize the well-being of its customers, it strives to deliver value-added services and expand its offerings to address the evolving requirements of the market.
Currently, Tata AIA primarily focuses on providing long-term health covers with fixed benefits. However, the company sees an opportunity to expand its offerings and is keen to explore the realm of short-term health insurance, particularly indemnity plans that offer comprehensive coverage. Naveen Tahilyani, the Managing Director and CEO of Tata AIA, expressed the company’s enthusiasm for entering this market. He stated, “We are very keen to explore the health insurance space. If the regulatory environment allows us to offer short-term health insurance, especially indemnity plans, we would be eager to pursue that avenue. As a life insurance company, we already offer long-term health coverage with fixed benefits, and this year, we intend to focus even more on expanding that segment.”
In addition to short-term health insurance, Tata AIA is considering value-added services that could be integrated with its products. One such service is its ‘vitality’ program, designed to enhance policyholders’ overall health and well-being. If the regulations governing insurance licenses are revised, Tata AIA could potentially incorporate this program into its life insurance products.
While awaiting regulatory amendments, Tata AIA remains committed to delivering excellence in the insurance sector. The company’s success story serves as a testament to its customer-centric approach, strong product portfolio, and ability to adapt to changing market dynamics. As Tata AIA explores the realm of health insurance, it aims to reinforce its position as a leading player in the industry by providing holistic coverage and value-driven solutions to policyholders.
