Recent insurance reforms are giving a fresh push to customer demand while strengthening transparency and affordability, says HDFC ERGO General Insurance MD & CEO Parthanil Ghosh in, who expects the changes to support wider insurance penetration. The general insurance player has also been investing heavily in technology in its operations. Excerpts from an interviewHow do you see the impact of the recent insurance reforms on the industry, businesses and customers?The regulatory changes over the last four years have been extremely pro-customer, aimed at improving awareness, affordability and accessibility. The GST reforms address affordability, while the Insurance Act amendments and regulations seek greater accountability and transparency from insurers. This is important because the trust quotient between consumers and insurers needs to improve. Around 9 per cent of people get some kind of claim in a year across products, while the remaining 91 per cent need confidence that their insurer will support them when an insured event occurs. Greater transparency, including disclosure of parameters on insurers’ websites, can help build that confidence.What impact are these reforms having on HDFC ERGO’s business?We have seen strong customer traction. From October 1, our new retail health insurance business has been growing by more than 100 per cent compared with the same month of the previous year. Overall retail health, including renewals, grew around 52 per cent in the last three months, while motor insurance premium grew 55 per cent. Our first-quarter overall growth was 20.6 per cent, about twice the industry growth. Our health claims payout ratio in the first quarter was 98.3 per cent. The commercial lines market is currently in a very soft cycle, but we have focused on protecting our portfolio and balance sheet and reducing volatility.What are the key trends you see in health insurance and customer preferences?Consumers are increasingly looking for comprehensive health covers without having to worry about what is payable or not payable at hospitals. They are also concerned about medical inflation and whether their sum insured will be adequate. Our Optima Secure Plus has consumables cover built in and increases the base sum insured every year irrespective of claims. A ₹10 lakh policy can become a ₹1 crore policy after 10 years under the product’s structure. We have also provided a 5 per cent lifelong discount on the prevailing premium for customers who join before age 35. Consumers are also seeking cashless services, OPD benefits and wellness covers.Is “Insurance for All by 2047” achievable?I am very confident that India will become a developed country by 2047 and insurance for all has to happen by then, and preferably before that. The structural reforms are moving in the right direction. The industry is working on creative, affordable products and solutions that can reach customers digitally or physically. The challenge is to reach the missing middle and improve affordability and last-mile access through platforms such as Bima Sugam and government schemes. Parametric insurance also offers an opportunity, particularly because only 10-15 per cent of economic losses from natural catastrophes are estimated to be covered by insurance.