Narayana Health, a healthcare provider in India, plans to launch its health insurance service by the first quarter of FY25, reported Moneycontrol, citing group CFO Sandhya J.
The company received approval from the Insurance Regulatory and Development Authority of India (IRDAI) in January 2024 to enter the health insurance market.
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Sandhya stated: “We hope that in Q1 of the coming financial year we will be able to go live with our first product.”
While there are concerns regarding the potential conflict of interest between hospital and insurer roles, Narayana Health aims to disrupt the current paradigm.
“We believe that we will be able to disrupt the way health services are consumed in the country,” the executive added.
Sandhya highlighted the significance of health checkups in reducing future hospitalisation costs, which is a focus area for their insurance offering.
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By GlobalDataCurrently, most health insurance providers in India offer coverage predominantly for hospitalisation-related illnesses.
Coverage for outpatient expenses, including doctor consultations and pharmacy bills, is less common.
“We will have different products to cater to different segments of the population. Some of these will cover outpatient also,” Sandhya said, adding that, “some products will focus on economical solutions targeting the missing middle (those who cannot afford insurance today), so we will cover across the spectrum.”
The company’s capital expenditure for FY24 was around Rs10bn ($120m), and it intends to sustain this level of investment over the coming years.
The majority of FY24’s capital was allocated to expanding the Narayana Health centre in the Cayman Islands, which is nearing completion and will feature enhanced daycare facilities.
Future capital expenditure will be directed towards growth within India.
Late last month, Galaxy Health and Allied Insurance Company received IRDAI approval to start its health insurance operations in India.
This brings the total number of stand-alone health insurers in the country to seven, with Galaxy Health being the second to gain approval in 2024, following Narayana Health.
