TPA's to expand in Tier 2 cities

According to a report of Financial Chronicle September 08, 2008 TPA's will be growing in Tier 2cities as more and more people are being insured in these cities.Till recently were having on an average service network of about 10-15 branches in the country, most of which being in state capitals. In contrast, the general insurance companies, which control nearly the entire health insurance product portfolio, are present in an average of 400 locations. This huge disparity requires TPAs to aggressively expand their operations to meet the needs of the burgeoning health insurance market, industry experts believe. Besides, implementation of various government-sponsored health insurance schemes such as RSBY (Rashtriya Swashthya Bima Yojana) demands enhancement of service administration capabilities from TPAs. One of the larger TPA players, MediAssist, is planning a major expansion in tier-ii cities, both in terms of number of centres and employees, and is also looking to service various government-sponsored health insurance schemes.Let us hope that expansion does not result in deterioration of the service level.
Labels: Service level, TPA's to expand in Tier 2 cities