Apollo Munich eyes Rs 150 crore from its new product

Apollo Munich eyes Rs 150 crore from its new product

Apollo Munich Health Insurance (AMHI), a joint venture between Apollo Hospitals Group and global reinsurance company from Germany, Munich Re, is eyeing Rs 150 crore premium income in the next 12-18 months from its new product 'Health Wallet'.

The company has introduced a new category WINSURE with its new insurance plan Health Wallet.

Krishnan Ramachandran, Deputy Chief Executive Officer, Apollo Munich Health Insurance said, "With this, we have created a new category and we have been getting good response for this. This product offers Reserve Benefit that pays for a variety of healthcare expenses."

Calling it a next-gen product, Ramachandran said, it solves problems, including affordability issues that come when one gets closer to retirement.

Health Wallet creates a reserve kitty for the customers and that can be used for various expenses such as speech therapy, vaccinations, contact lenses, spectacles and so on.

Almost 65-70% of the total healthcare spend is incurred out of pocket, and also under insurance is quite prevalent, he said.

"We have invested heavily in technology and online training. When it comes to sales, there is lot of digital influence, and more than 30% of our consumers renew online," he said.

The size of the health insurance industry is Rs 34,000 crore, and Ramachandran is confident that it will touch Rs 1 lakh crore in the next five years. He also sees huge potential in Tier-II and Tier-III cities.

While the industry is growing at 18-20% Y-o-Y, the company is growing at 32%. AMHI closed the last fiscal year with gross premium of Rs 1,300 crore, and it expects to close this year above Rs 1,700 crore.

"We have 158 branches and there are 11 in Karnataka. We have been profitable in the last three years. We are planning to add 35-40 branches in the next three years," Ramachandran said, adding that the company has a total workforce of 3,500.

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