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“Modicare” to Boost Insurance Sector, Says S&P Ratings
February 14, 2018
Hailing the center’s National Health Protection Scheme (NHPS) aka “Modicare” as a “game changer”, S&P Global Ratings said that it will give a big push to the insurer’s premiums and have a far-reaching impact on the insurance sector.
The ratings firm said the mere size and scope of the scheme is enough to imagine the kind of impact it can have on the industry. It also said that once the scheme is implemented, the insurers are also likely to introduce new products to capitalize on the tax benefits.
Since the government is planning to merge 3 of the biggest public sector insurance companies viz. Oriental Insurance, National Insurance, and United India Insurance, it will reduce the competition in the insurance sector and “improve overall profitability”.
