According to The Times of India, Krishnan Ramachandran, MD & CEO of Niva Bupa Health Insurance, emphasized that sustained investment in distribution and customer acquisition is essential to add covered lives in India's deeply underpenetrated market. Speaking on the company's recent performance, Ramachandran noted that customers who remain with an insurer beyond the initial years receive significant value, with claims payouts exceeding ₹80 for every ₹100 of premium collected after early policy years. The CEO argued that "Health insurance is an essential good. It is the single largest reason why Indians become poor even today," calling for wider mandates for those who can afford coverage alongside subsidies for those who cannot afford it.
According to reports from The Hindu BusinessLine, Niva Bupa Health Insurance experienced a 13% year-on-year increase in average ticket size of policies during Q3FY26. As reported by the company's Executive Director and Chief Financial Officer Vishwanath M, this growth was primarily driven by the GST exemption on individual health insurance premiums. The incremental uplift in average ticket size was directly attributable to GST relief, with the company noting that normally 7-8% growth comes from inflation, making the additional 13% growth directly linked to the policy changes. According to The Times of India, Q3 volume growth was 29%, while value growth was 15%, which means ticket sizes increased materially in the quarter, with momentum strengthening from October through December and December showing even better growth.
As reported by The Hindu BusinessLine, the insurer's gross written premium grew 55% year-on-year to ₹2,231 crore in Q3FY26. However, the company reported an operating loss of ₹135.53 crore in Q3FY26 versus an operating profit in the same period of FY25. According to Vishwanath M, this was due to accounting timing issues related to multi-year policy changes, where only half of premium is now recognized in the year of sale, while the rest is deferred for next year. The company's Expenses of Management (EoM) ratio improved to 36.3% for 9MFY26, versus a regulatory allowance of 35.9%. According to The Times of India, Ramachandran noted that Niva Bupa has invested about ₹2,800 crore of capital to build scale in a retail-led market, emphasizing that "Without physical and advisory reach, lives will not get added."
According to the company's disclosure to The Hindu BusinessLine, retail business grew 43% in Q3 compared to 28% in the first half of FY26. The growth was attributed to the GST reduction on retail health insurance, with demand picking up sharply across all channels. As reported by The Times of India, Ramachandran highlighted that sustained investment in distribution and customer acquisition is essential to add covered lives in a market that remains deeply underpenetrated. As reported by Vishwanath M, 40% of retail business is new business while 60% comes from renewals and upgrades. The company noted that on their direct digital channel, new business grew 65-70% year-on-year in Q3, reflecting higher traffic and better conversion driven by GST relief.
According to The Times of India, Ramachandran identified a significant policy issue where "Public data shows that the loss ratio in corporate covers is over 100%," meaning retail policyholders and taxpayers are subsidizing group insurance for large corporates. He argued that "The long-term solution lies in expanding retail health insurance coverage," noting that India has one of the highest proportions of retail health insurance globally but remains massively underpenetrated. Speaking on recent regulatory and tax changes, Ramachandran noted that the effect of GST on insurers needs to be seen in two distinct parts — commissions and other input services. He explained that commission has been passed on to agents following GST withdrawal, while savings on claims side, particularly through lower medicine prices, have offset increased costs from GST on input services. The CEO emphasized that "Insurers also need to continue investing heavily to build distribution and service capabilities, even if this keeps expense ratios elevated in the near term."
