Magma HDI looking to grow health insurance business


Rajive Kumaraswami, MD and CEO, Magma HDI. (Photo: Debasish Bhaduri)

Magma HDI General Insurance Company, which is primarily into motor and commercial insurance space, expects health insurance to account for 20 per cent of its total business in the next three years.

According to Rajive Kumaraswami, MD and CEO, Magma HDI, health and accident currently accounts for a little over 3 per cent of its total business.

As on March 2017, the insurer’s gross written premium was close to ₹423 crore. Motor currently accounts for nearly 80 per cent of its total business.

“Our basic strength has been in motor and then comes commercial which accounts for over 21 per cent of our business. Moving forward our focus will be on health, motor and commercial insurance,” Kumaraswami said, at a press conference here, on Monday.

The company announced the launch of OneHealth — a health insurance plan which would cover significant medical conditions as well as lifestyle diseases like lasik, bariatric surgery and psychiatric treatments, among others.

Magma HDI grew 28 per cent year-on-year in the first six months of this fiscal FY18 to ₹240 crore.

The share of motor will come down to 60 per cent, while commercial and health and accident individually is likely to account for 20 per cent of its total business in the next three years, he said.

“Magma has a strong distribution network in semi-urban and rural areas, we plan to tap this network for reaching out to these markets,” he said.

Nearly two-thirds of the company’s health insurance business is expected to come from rural and semi-urban areas, the remaining coming from the urban markets.

This apart, the company will also try to push health insurance products to employees of 300-odd corporates with whom it currently has tie-ups for commercial insurance policies.

The health insurance provided will be more of a top-up or add-on cover, Vikas Mittal, Deputy CEO, Magma HDI, said.