Kolkata: Young adults under 35 need to be encouraged to buy health covers as this should help lower overall risks and costs for insurance companies, obviating the need for frequent increases in premiums, said Mayank Bathwal, chief executive officer, Aditya Birla Health Insurance Co.
Young adults are generally healthier and file fewer major claims, which balances out medical costs of older plan members.
However, Bathwal said this age group typically avoids buying health insurance as they don’t see immediate tangible benefits from such covers.
He said that while about 65% of India’s population is below 35, they represent less than 15% of the total number of policies sold.
“Health insurance must evolve with changing consumer lifestyles and wellness habits. Younger consumers today actively invest in their wellbeing as part of their daily lives. This creates a clear opportunity to make insurance more relevant to how they live,” Bathwal said in Kolkata, after announcing the launch of a health-focused insurance plan targeting the younger generation.
The health insurance joint venture of Aditya Birla Capital reported a 50% year-on-year surge in gross written premium of Rs 2,196 crore at the end of June. It also booked a net profit of Rs 18 crore as compared with a loss of Rs 28 crore.
Aditya Birla Capital holds 46% stake in the insurer while South Africa’s Momentum Group holds 44% with the balance 10% being with Abu Dhabi Investment Authority (ADIA).
