Ayushman Bharat credit positive for insurers: Moody’s

• Global rating agency Moody’s said it will be credit positive for insurers as it will help grow health premiums and provide insurers with cross-selling and servicing opportunities.

• However, since 23 of 29 states have chosen to run the scheme as a trust model, the prospect of insurers’ growth is lower, it added.

• It said it expects that insurers with scale advantages and track records of managing large insurance schemes will benefit from the health programme. Additionally, the programme will provide these insurers with opportunities to cross-sell other products and services to this new customer base.

• Due to the trust model, the agency expects that health insurance premiums will increase but only by about Rs 10,000 crore for the additional coverage to 10 crore families. This is much lower than the current Rs 30,400 crore of coverage of 44 crores.

• In a thumbs-up to the government’s ambitious health insurance scheme, global rating agency Moody’s said it will be credit positive for insurers as it will help grow health Health insurance contributes about 23 percent of general insurance premiums and is one of the insurers’ main growth drivers. Health premiums have grown at a compound annual growth rate of 18 percent.

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