Mr. Gaurav Jain, VP, Strategy, Aviva addresses the 2012 batch of FMS, Delhi

 | August 19,2010 05:58 pm IST

Mr. Gaurav Jain gave valuable insights about the health Insurance sector in India and conducted a short exercise on health insurance product design with the students of FMS, MBA FT 2012 batch.

He began the session by taking questions from students. The queries ranged from “future of Health Insurance given the new policy framework” to “history of Health Insurance in India”.


He described the roadmap taken by IRDA (Insurance Regulatory and Development Authority) regarding Health Insurance and remarked, “the 4 big things to happen in the near future of Health Insurance will be: cheaper costs, commoditization of insurance products, more transparency and higher volumes”. He also explained the effects and manifestations of Adverse Selection and Moral Hazard in relation to the Health Insurance Sector.


Mr Jain presented several facts and statistics to give an overview of the Indian Health Insurance scene in comparison with that of the developed nations. In addition he presented a timeline of the history of the sector and encouraged students to identify and analyze trends such as emergence of companies specialising in Health Insurance and the convergence of Health Care providers and Health Insurance. Elaborating on the rationale behind the entry of Life Insurance players into Health Insurance he said, “Life Insurance cannot remain our bread and butter. Soon, it will only be butter. Therefore, we must also look at the Health Insurance business. Second, Life Insurance and Health Insurance are directly related and providing them together makes business sense globally.

When you have better Health Insurance, your Life Insurance claims will go down”.


A comprehensive description of Health Insurance products was provided by Mr. Jain. He elaborated on the risk offerings and design complexity for each product ranging from Policies with Riders, Over- The-Counter products to evolving ones in the field of Managed Care. He also discussed the Underwriting-Pricing trade off and the Risk Management process involved in product design. He emphasized the importance of Behavioural Finance in design of products that decrease instances of conspicuous consumption. This was followed by a workshop in which the students were divided into six teams and each team was given a category of health insurance for which they had to design a product keeping in mind the considerations explained by Mr Jain. A short presentation and analysis of each product was done to highlight the nuances of product design.