Direct Purchase Trend On The Rise: Mayank Bathwal, CEO, Aditya Birla Health Insurance

In an interview with Mayank Bathwal, the CEO of Aditya Birla Health Insurance, we delve into the challenges surrounding the relatively low uptake of health insurance in India. Mayank sheds light on the cultural factors, evolving customer needs and the innovative strategies employed by Aditya Birla Health Insurance to address these issues. Excerpts:

Why do you think there is a relatively low uptake of health insurance among individuals?

The challenge lies in whether customers perceive value in health insurance today. Many individuals are content spending on luxuries like a cup of coffee at Starbucks for Rs 350. Even with just two cups a month, the yearly expense adds up to Rs 8,400. In contrast, a young person could secure health insurance coverage for Rs 6,000 to Rs 7,000 with that amount. It's a matter of priorities—choosing between a perceived value in Rs 8,400 worth of Starbucks coffee or investing in health insurance.

In India, there's a cultural inclination not to focus on risk protection, as belief in karma prevails. This mindset needs to evolve and it's a gradual process. Building awareness, highlighting relevance, ensuring portability and enhancing the overall customer experience are essential components of this transformation and we are actively addressing these factors through our offerings.

How are we really adapting to the changing needs and demands of the customers?

There's a growing interest in direct purchases, with customers seeking benefits for buying directly. Responding to this trend, we introduced a digital version called 'Next Active One,' offering not only cost savings but also modular benefits for personalised coverage.

Some individuals expressed the need for coverage beyond hospitalisation, especially for ongoing health conditions like diabetes. Our products now cover expenses related to doctor visits, tests and offer discounts on medicines.

Additionally, to address concerns about rising medical costs, our products include an inflation-linked benefit that ensures the sum assured increases over time, providing reassurance for the future.

How did the concept of including live-in partners, whether same-sex or opposite, in the newly launched 'Activ One' health insurance policy originate? Is there any specific requirement for documents for the same?

Why the need for special documents? It’s right that for insurance, practically everything requires documentation. However, when it comes to covering two individuals under the same policy as living partners, we don't necessarily need extensive documentation. From our perspective, it's considered fine, as we treat them as two separate lives. Combining them in one policy is advantageous for us, as it adds more lives and promotes inclusivity, making a fresh policy more comprehensive.

How does Aditya Birla Health Insurance ensure transparency and trustworthiness in its interactions with customers?

Firstly, originating from the trusted Birla brand, we prioritise trust and transparency, which serves as a foundation for building meaningful connections with our prospective customers. In health insurance, complaints primarily manifest in the area of claims, where customers may express unawareness of certain benefits, especially related to non-medical expenses beyond their control, such as hospital charges.

To address these concerns, we focus on three critical areas: denial, deductions, and delays. In the case of denial, if a customer has fully disclosed information during the policy purchase, they will not face denial of a claim. To ensure customer understanding, we invest in a unique practice called the "welcome call," where every retail customer is called back post-purchase. During this call, we reiterate policy benefits, confirm disclosures, and seek the customer's agreement, creating a recorded call for future reference. 

Regarding deductions, particularly those related to non-medical expenses, we have taken steps to address and minimise such deductions. The issue of delay is more pertinent to reimbursement claims, while cashless claims are expedited. We are actively engaging with the Health Claims Exchange to collectively address delays at an industry level.

Furthermore, we've revamped our policy contract to enhance clarity and simplicity. We aim to make the contract more understandable, moving away from legal jargon. The summarised benefits are presented in a straightforward manner to ensure customer comprehension.