Nilanjan Roy, Head of Group Business, ManipalCigna Health Insurance,in an exclusive interview with Asia Insurance Post, speaks about the latest trends in the Indian health insurance industry
What strategies is ManipalCigna adopting to expand its business, and how does
the current retail-to-corporate mix contribute to this growth?
At ManipalCigna, our focus is on driving sustainable growth and building a balanced portfolio across both retail and group segments through our Multi-Channel, Multi-Product, and Multi-Segment strategy.
We are strategically scaling our group business to achieve an optimal retail-to-corporate mix, supporting topline growth while ensuring prudent expense management. This approach allows for risk diversification and mitigation, besides providing adaptability in the evolving market dynamics.
Portfolio balance is integral to our core vision of delivering comprehensive health security while improving well-being and peace of mind of our customers.
How has group health insurance evolved from a basic employee benefit to a key
tool for talent retention and employer branding?
Today, organizations view comprehensive health plans as critical investments aligned with global employment practices. Flexible offerings, enhanced coverage options and superior customer services through a strong digital ecosystem is a key requirement for employees.
Keeping pace with this evolving need, insurers are developing customer services that can be customized at an employer level. By enabling this in the group health insurance segment,insurers are supporting employers of today in improving their benefit objectives and boosting retention, enhancing productivity, and strengthening employer reputation across industries.
In what ways can sustainable group insurance models help address India’s rising
medical inflation, and what is ManipalCigna’s differentiated approach here?
Sustainable group insurance models are crucial in addressing India’s rising medical inflation, with healthcare costs doubling roughly every six years. We advise employers to regularly benchmark their health benefits against peers and global best practices to stay ahead of market shifts.
Ongoing collaboration between employers, insurers and broker partners remains pivotal to keep health insurance coverage impactful and premium prices optimal in
the long run.
At ManipalCigna, we focus on product innovation, data-driven underwriting, and proactive claims cost management, including globally proven initiatives such as Population Health Risk Management (PHRM).
Our wellness-first approach integrates preventive healthcare, delivering both affordability and enhanced value for employers and employees.
How are digital tools, analytics, and partnerships with insurtechs transforming
your distribution strategies and customer engagement?
Digital innovation is transforming customer engagement in almost every industry, and
insurance in no exception. We leverage tools such as automated underwriting, dynamic
pricing, and AI-powered claims management to enhance operational efficiency, customer experience and better our medical loss ratio. Collaborations with insurtechs further accelerate digital enablement, making insurance more accessible, cost-efficient, and transparent for all stakeholders.
What kind of hospital network does ManipalCigna have today, and how do you
see initiatives like common empanelment benefiting customers?
ManipalCigna’s network includes over 15,000 hospitals, extending across metros and
regional locations in Tier-2 and Tier-3 cities. Beyond wide accessibility, we emphasize
transparent billing processes and service-level adherence to ensure consistent quality. We are also using the power of digital tools to further enhance the hospital provider access, cost optimization and fraud control.
At ManipalCigna, we also believe multi-insurer collaboration through industry forums and associations will not only enhance customer trust in health insurance but also contribute to better healthcare accessibility, affordability and inclusivity.
Are more companies now availing group health policies?
India is witnessing growing adoption of group health policies across sectors. Post-pandemic, there has been increased uptake among start-ups and SMEs, signalling that employee well-being is now a priority beyond large corporates. We are observing two key trends:
-Firstly, large corporates offering higher flexibility to their employees to choose the
right health cover for themselves and their families.
-Secondly, the SME segment focusing more on bundled packages that integrates,
core health insurance coverage with preventive care.
Is undercutting too rampant in group health insurance business?
Competition in the group health insurance segment is intense; however, we believe that
long-term premium sustainability outweighs aggressive price undercutting. Factors such as rising medical inflation, advanced treatment costs, and regulatory expense norms
necessitate prudent and adaptive pricing strategies with a sustainability focus. Large group contracts can offer quick top line benefits, but undercutting severely impacts the combined operating ratio (COR) of health insurers.
At ManipalCigna we remain committed to offer a competitive pricing backed by a strong
client service proposition, product innovation, access to larger health wellness and OPD
ecosystem that differentiates us in the market. We are also introducing globally proven
claims cost management tools and portfolio analytics that promotes long term client
persistency.
Is it true that in group health insurance, premiums are less but claims ratio remain
high whereas in retail, premiums remain high, but claims are relatively low and in the process, retail customers subsidise group policies?
Cross-subsidization between group and retail insurance is a standard industry practice. This supports stable pricing and better expense management. By maintaining a well-balanced retail-to-group portfolio, we diversify our risks and ensure long term coverage continuity for our customers, at the same time this mix reduces the claims concentration risk.
How do you think zero GST in health insurance will impact health insurers and
customers? Will the health insurance premiums fall?
The proposal to remove or reduce GST on health insurance is a welcome step toward
making coverage more affordable and inclusive. Its true impact on premiums, however, will take time to unfold, as factors like pricing structures, and input credit adjustments, will shape the outcome.
In the near term, the change could improve affordability perception and encourage more people to consider health insurance, while for insurers, it may enhance operational efficiency and cost management. It’s essentially a wait-and-watch phase, as the insurance industry awaits greater clarity.
How do you view the proposed Bima Sugam platform and the push towards
common industry platforms—what impact could these have on health insurers and
customers?
The Bima Sugam platform represents an important step toward creating an open and
inclusive digital marketplace for insurance in India. For health insurers, it promises greater inclusivity, streamlined processes, and cost efficiencies through a unified platform for distribution, service, and much more. While it holds significant potential to enhance transparency and accessibility, its full impact will depend on effective implementation and collaboration across industry stakeholders.