Aditya Birla Financial Services Group on Thursday launched Aditya Birla Health Insurance, a joint venture between Aditya Birla Group and MMI Holding. Aditya Birla holds 51%, while MMI Holding will own the remaining 49. Aditya Birla Health Insurance becomes the sixth private standalone health insurance player.
The new entrant will introduce a chronic care management programme to cater to unmet needs of a growing Indian population of those suffering from five chronic lifestyle conditions. “We are very bullish on this sector and our business model, as health is a core necessity for the ambitious India. Our partner brings a vast amount of knowledge and IP in this area which we think will be invaluable to our customers,” said Ajay Srinivasan, chief executive-financial services, Aditya Birla Group.
On the distribution front, the insurance will have a multi-channel distribution model across agency, broking, bancassurance, direct marketing, online channel, among others. “We are going to go for multi distribution channel, whether its agencies, brokers, banks, even online is picking up very well. To start with in our agency we are starting with top seven cities and we want to quickly reach the mark of 100 cities in short span of time. Brokers are very large in health insurance space in India and even banks are getting more active given the open architecture,” said Mayank Bathwal, CEO at Aditya Birla Health Insurance.
Officials in the insurance industry say, it takes around seven-eight years to break-even in the health insurance space in India, largely due to the stiff competition and aggressive pricing. But Aditya Birla Health Insurance believes that with engaging with clients and managing their health they can break-even within five-six years.