Tête-À-Tête with Antony Jacob (CEO of Apollo Munich Health Insurance)

Online, June 14, 2011 (Newswire.com) - The CEO of Apollo Munich Health Insurance, Mr. Antony Jacob, believes that a strong IT platform and in-depth knowledge of the customer at the proposal stage enables reduction of claims rejection later. In a recent interview with Ritu Kant Ojha of The Indian Express, he said 'We are in the business to pay claims'.

When asked about the journey over the past 3 years, Mr. Jacob said that Apollo Munich Health Insurance, which is a standalone health insurance provider in India, has seen tremendous growth in the last 3 years. The company, a joint venture between The Apollo Group of Hospitals and Munich Health, earned a GWP of Rs. 283 crores in the financial year 2010-11. This is 148% more than the GWP of 2009-10 which was Rs. 114 crores. Apollo Munich has insured more than 27 lakh lives in the nation.

Ritu then went on to talk about the challenges that come with health insurance distribution. She then discussed the challenge faced by agents, specifically due to the comparison between the 15% commission of health insurance agents and a 30% commission of life insurance agents. Mr. Antony Jacob agreed that there has been a challenge in health insurance distribution. However, he added that during the financial years 2009-10 to 2013-14, health insurance premium is probable to grow at a compound annual growth rate of more than 25%. The current trends in the insurance industry point to the fact that there is tremendous potential for health insurance agents and therefore the 'challenge' would eventually reduce. Mr. Jacob is certain that the projected growth for health insurance agents is an attractive proposition for them.

When asked about the settlement of claims being another problem commonly faced by health insurance companies, Mr. Antony Jacob reiterated that Apollo Munich is in the health insurance business to pay claims. With the strong IT platform and clear policy wordings, the company manages to keep the claim payment process in check. The company is therefore able to fulfill its obligation to shareholders as well as policy holders.

Ritu then asked Mr. Jacob about the fine prints that one must check when purchasing a health insurance plan. Mr. Jacob said that buyers are given three key tips-firstly to fill up the proposal form themselves, secondly know the exclusions and last but not least, read the policy wordings thoroughly. Mr. Antony Jacob and Ritu Ojha then went on to talk about the breakeven point for Apollo Munich. Mr. Jacob said that he believes that breakeven for health insurance companies usually happens between the 5th and 7th year of operation.

Ritu also asked if he was "looking at raising long term capital through FDI if the cap is raised". Mr. Jacob's answer to this was that "our shareholders are committed to fund the growth plans of our company in line with the IRDA regulations." The two went on to talk about the compulsory clause of 'rural sector obligations'. Mr. Jacob said that the company has participated in some micro insurance projects. However, the company is trying to enhance their understanding of the needs of the sector before plunging into it in a big way. Over the years, Apollo Munich has participated in RSBY Meghalaya and Maharashtra project to experience the problems and understand the needs of the rural folk. Mr. Antony Jacob said that in a couple of years, the company would probably make its way into rural projects.