Max New York Life to double equity base
16 Oct 2007
Max New York Life Insurance will add Rs750 crore worth of fresh capital by the end of 2008, to double its equity base from Rs807 crore to Rs1,557 crore. The life insurer plans to introduce health insurance products from next year.
"We will launch health insurance products by the first quarter of next year," managing director and CEO of the company Garry R Bennett told the media, adding, "One of our focus areas will be to expand our portfolio and give a better product mix to our existing and new policyholders."
The new defined benefit plans, will be for critical illness and hospital bills. The company expects to make a filing with the Insurance Regulatory and Development Authority (IRDA) later this year.
Life insurance companies are gung ho about getting into health insurance. While ICICI Prudential and Bajaj Allianz have already launched a range of standalone health insurance products, other insurers like SBI Life and HDFC Standard Life are working on product strategies. State-owned titan Life Insurance Corporation of India (LIC) also plans to introduce a health insurance product.
Health insurance is estimated to have a penetration of 0.02 per cent or less of India''s gross domestic product (GDP). Over 75 per cent of Indians pay for healthcare in cash. Healthcare costs have been rising over 20 per cent per annum.
In India, health insurance is clubbed with general insurance, unlike other countries where health products are sold mainly by life insurance companies. General insurance companies prefer to be in more profitable businesses like fire and auto insurance. But after removal of fixed tariffs in the general segment, players are taking a fresh look at health insurance.
Max New York Life, a 74:26 joint venture between Max India Limited and the US-based New York Life, has been in operation since 2001. Its present paid-up capital of Rs807 crore includes an infusion of Rs75 crore the company made in September this year.
Max
Life is present in 122 cities through 175 offices. It plans to open 150 offices
as part of its expansion drive, of which 50 offices will be opened this year and
the rest next year
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