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INSURERS FLOAT 2-YEAR HEALTH PLANS
June, 11th 2010

Schemes aimed at retaining clients, are cheaper, but have disadvantages too. As customer retention continues to be a big issue among insurance companies, some general insurance companies such as ICICI Lombard, HDFC Ergo and Royal Sundaram General Insurance are offering auto renewal of health insurance policies by taking premiums of two years at one go.

Insurance experts say such an arrangement will not only help insurance companies retain customers for at least two years, but will also help reduce their service cost.

Usually, health insurance schemes offered by general insurance companies have one-year term and they are renewed every year.

However, life insurance companies offer health insurance-cum-savings policies that have five to 10 years tenure.

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