At the Health Insurance Summit 2022, IRDA Chairman Debasish Panda said that it is possible that health insurance is costlier due to higher operational and distribution costs as well as hospital expenses as an indirect cost. The prescribed price is probably very high, making insurance cover inaccessible to many sections of the society.
Health insurance is expensive for many sections of the society. There is a need to reduce the cost of health insurance to increase its reach to those sections. Debashish Panda, chairman of the Insurance Regulatory and Development Authority of India (IRDAI), said on Tuesday, we need to leverage technology to reduce costs.
At the Health Insurance Summit 2022, he said that it is possible that health insurance is expensive due to hospital expenses as an indirect cost along with high operational and distribution costs. The prescribed price is probably very high, making insurance cover inaccessible to many sections of the society.
Expenses have to be reduced to make it affordable
Panda said, ways to reduce expenses have to be considered to make insurance affordable. Advanced technological solutions can be one way out. We are also actively participating in key industry questions, he added. The regulator is working on relaxing the cap on management expenses as demanded by the industry.
