FIXING HEALTH INSURANCE: THE CASE FOR BETTER UNDERWRITING AND OVERSIGHT

Health insurance dominates public discourse and has become the largest non-life segment, expanding with rising medical costs and growing demand for healthcare financing.

- SHREERAJ DESHPANDE

Medical inflation—two to four times higher than general inflation—is driven by technology, wage hikes, and higher demand for quality care. While governments bear primary responsibility for curbing it, providers and insurers must ensure that insured patients do not worsen the problem.The growth of private healthcare in underserved regions and higher demand for quality care are also pushing costs up. In volume-driven systems, regions with more hospitals and doctors see more visits and higher hospitalization rates.

Customer complaints between health insurers and healthcare providers have increased, often due to a key lapse: insurers ignoring the principle of “underwriting at acceptance, not at claim.”

Strong due diligence during onboarding is crucial to avoid disputes later. Yet, in their rush for growth, some insurers skip proper underwriting at the start and revisit it only when claims arise, leading to mistrust and friction.