Fundamentally there are two categories one is Indemnity insurance the other is benefits Insurance the benefits policy in Indemnity insurance you get put back into the same situation that you were before the claim happened which means it's kind of a restitution right in benefits policy that you have you get to claim an amount if that event occurred no questions asked so the way the policy is structured is very different the way the operating Rhythm of the insurer is also very different right

The expansion happened because of the private sector private sector came in I think the first private sector license was issued in 2000 um and uh there was slew of companies that got the first bunch of licenses and what private sector definitely did was to put pressure on the public sector and it was also a time when most of the traditional products were price controlled so we had what was called the Tariff advisory Council in those days which meant there was a Blue Book of which you read the rates for your regular property insurance and you know marine and all of the regular insurances that a organization would buy

What about individual health insurance correct so Group Health was the first product around health insurance which got some traction because of the fact that you could aggregate in large numbers and there was an attachment point which is your organization right where you went to and therefore people started picking up this product it what it helped do for insurers is that it helped them work the operation side of their business they were able to receive claims they used to ensure that the operations were robust enough they had this entire Plumbing down between the TPA and this so that was you would say it's a learning curve for them so it helped them you know put that engine in place which is good uh then they had to get the next point of saying that how do we offer individual health insurance to Consumers right which is where the journey started

We started by talking about the rise of Private health insurance and we went into group health insurance right what about individual health insurance correct so Nar Health entered the health insurance space much more recently do you offer group health insurance as well no that's a space we wouldn't get into see our journey with health insurance came on the other side of the transaction I've been running hospitals for close to two decades now and got to participate in a lot of the Tom Foolery that exists in how insurers work with hospitals and doctors in admitting denying submitting claims and it is always the most frustrating experience for any hospital and for any consumer no doubt

Health insurance in India is designed around catastrophic illness, pays for the most expensive things you'll ever have, and doesn't consider preventative healthcare, patient satisfaction, or patient experience.

Group insurance is a lose-lose-lose proposition for the insurer, employer, and employee. Insurers don't get the pricing they need, employers can't properly understand the renewal process, and employees are left with high costs.

Group insurance can lead to a false sense of security, encouraging individuals to take their health for granted and not plan for the future.

Insurance companies need to improve the way they sell retail insurance policies, focusing on preventative healthcare, patient satisfaction, and patient experience.

Health insurance is an inefficient market, and individuals are being subsidized by group policies. The cost of claims is much higher in individual policies compared to group policies.

The cost of claims is being driven by the high cost of distribution and administration, which adds to the overall cost of individual policies.

Pricing is a major issue in the health insurance market, with prices being driven by distribution costs rather than actual healthcare costs.

Distribution costs are high in the health insurance market, adding to the overall cost of individual policies.

I think the same thing about protection needs to be you know pushed out. Shiva, both you and Vin are making a very important point which is in some sense it's almost like an 180° behavioral shift...

What are we doing and and you said earlier that it's also in your incentive as a business to keep people healthy... Now what are the tools that you need to get it done?

So I'm not telling you all of the profit-seeking aspects of that that's not part of the conversation that's involved right you're coming into us as a patient... You'll sit with our doctor, you sit with the nutritionist, we'll do the entire testing...

The current model of insurance does not work, and something needs to change. We're trying something different, which looks disruptive and nonsensical, and it may not make money initially.

Insurance companies with private equity funding are not patient and are only focused on short-term returns, whereas V's approach requires patience and a long-term view.

Regulation has been proactive in allowing companies to experiment and innovate, but the speaker is paranoid about the possibility of regulation going back to its previous restrictive ways.

Insurance industry has to evolve and innovate fast to stay relevant. Innovation can come from within the industry or from outside. Today, insurers are used to being commodity-based and selling products like they are undifferentiated objects. They need to understand the customer, develop strong brand, and build a differentiator in their business model.

Insurers have constraints that make innovation difficult. They have to maintain a certain solvency ratio, which makes it hard to invest in innovation. They also have to deal with existing infrastructure and legacy systems, which makes it harder to adapt to new technologies. Additionally, it is hard for them to disrupt their own business model because they have to maintain profitability in the short-term.

A new business model for insurers could be to become a healthcare company that offers insurance. This would allow them to understand the customer better and develop a strong brand. They could also invest in healthcare services and technology to create a more comprehensive offering.

Understanding the consumer is key to innovation in the insurance industry. Insurers need to understand how customers think and behave to develop products that meet their needs. They also need to understand how technology is changing the way customers interact with their insurance products.

There is a way to communicate that well, there is what change management is all about and all the best you know CEOs or companies that are able to do this are able to say look we will take the shortterm pain we will give up on one metric to win in another metric so you got to redefine the metric just no I completely agree with what V saying the point here is you don't need to shrink per se you can do a bunch of new experiments you can do very very focused localized Pilots everywhere to see if something is working or not

I think the priorities are different today I think they're not rethinking their own business models enough I'm not saying that they're not innovating I think there is a lot of confusion between what is an initiative and what is strategy they do multiple things they're really not playing for defined outcomes they're playing for things which they think they can do but I think it's a combination of many things coming together

I think the market is poised for some kind of disrupt I don't know but disruption but definitely for more Innovation say that what makes you say that that the market is I say because you look at uh home sales in India in the 1960 1970s how many homes were sold suddenly a product comes into the market called the home loan and it just explodes as a category