The state run general insurance companies are setting up a common TPA (third party administrator) to settle medical insurance claims, a move aimed at trimming their unwieldy claims ratio & boosting profitability.
The claims ratio,or percentage of claims to the premium earned, of the public sector companies in health insurance is over 120 per cent & they blame the TPAs for their spiralling losses in the segment. The partners in the new scheme are General Insurance Corporation, Life Insurance Corporation of India and the 4 general insurers New India Assurance, National India, United India & Oriental India Insurance. Insurers believe that an in-house TPA will help lower claims.
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