Weekly Insurance Round-up Tuesday, June 14, 2022
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We're back with the next edition of Beshak's Weekly News Round-up - an analysis of all Insurance News & Updates, straight from our research desk! Don't forget to share your feedback with us, and give us a thumbs up if you find this helpful!
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- MFine, a digital health platform, announced the launch of its new MFine Wallet on 9th June, 2022. This Wallet was launched to simplify the OPD reimbursement process and cover out-of-pocket expenses of the corporate employees.
- Many organizations have started providing their employees with corporate wellness programs that cover both hospitalization expenses, in-patient expenses, and other expenses.
- Even though these wellness programs provide services like telemedicine, medical-check ups, pharmacy benefits, etc., the organization has seen very few employees use these benefits.
- This is because most out-of-pocket expenses are not covered by such wellness programs or medical insurance. Even if they are, the process of reimbursement is manual, tedious, and time-consuming.
- The MFine wallet is launched to address such challenges. With the MFine wallet employees can -
- Easily manage their OPD expenses
- Reduce their out-of-pocket healthcare expenses
- Use the pre-loaded wallet balance and pay at any healthcare establishment using the regular UPI QR code of the provider
- With the MFine wallet, it will be easier for the employees to -
- Have complete visibility of the process
- Add dependents
- Keep track and add top-up balance for each employee
- Have an insight on the bucket-wise expenses to help them offer personalized OPD covers as required
- MFine is used currently by 5 Lakh employees and their families. They have partnered with more than 500 corporate organizations to offer a wide range of health services.
- IRDAI has now allowed life insurers to launch new products without the regulator's prior approval. The ‘Use and File’ procedure for most of the life insurance products was extended by IRDAI on 10th June 2022.
- IRDAI believes that the new relaxation will help in improving the ease of doing business for the insurers and will also lead to the expansion of choices available for the policyholders.
- With this new reform, life insurers can launch these products without the prior approval of the regulator. These do not include individual savings, individual pensions, and annuity products.
- The IRDAI added that the life insurance industry is expected to use this opportunity to respond faster to the emerging market needs in terms of designing and pricing insurance products, which will further help in increasing the insurance penetration in India.
- A similar decision was taken by IRDAI a day prior for health products as well as general insurance covers.
- According to a report by Redseer- a consulting firm, the insurance penetration in India is expected to rise rapidly with the market set to rise to $222 Bn by FY26.
- The growth is mainly driven by the growing middle class and increasing digital access.
- The report stated that with a total addressable market (TAM) of $66.5 Bn, the life insurance category comprised close to ¾ of the market which is then followed by motor insurance which has a TAM of $10Bn, and then the retail health insurance which has a TAM of $4.7Bn.
- The total addressable market (TAM) means the maximum size of the opportunity for a particular product or solution. TAM helps prioritize business opportunities by serving as a quick metric of a given opportunity's underlying potential.
- The motor insurance gross premium in India has increased due to strict motor regulations and a policy shift towards making India a digital economy.
- Even retail health insurance has increased, owing to the awareness created by the Covid-19 Pandemic, the rising cost of healthcare, and national campaigns on insurance policies.
- The report also stated that in India the penetration stands at 2%, signifying the opportunity for growth in the coming years.
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