India to Reward for Early Enrollment, Renewal and Wellness Activities
The Insurance Regulatory and Development Authority of India (Irdai) released a draft exposure on health insurance regulations on 19 January 2016, seeking to make minor changes to the existing health insurance regulations of 2013. The draft is a result of the recommendations of the insurance committee that was constituted in December 2014 to examine health insurance framework. One of the key recommendations of the committee was to introduce entry age-based pricing. This means a first-time buyer of health insurance would be charged more than a person of the same age who had bought health insurance earlier and is only renewing the policy. According to the report, the price differentiation can significantly impact penetration at the market level, and create a structural pull for persistency.
Accordingly, the draft exposure has stated that insurers may devise mechanisms or incentives to reward policyholders for early entry, continued renewals, favourable claims experience and preventive and wellness habits.