Max Bupa rebrands itself as Niva Bupa, stops using 'Max' brand name

Standalone health insurer Max Bupa Health Insurance, backed by private equity firm True North and Bupa, has rebranded itself to Niva Bupa Health Insurance.

Max India, which owned 51 per cent in the insurer sold its stake to True North in February 2019 for Rs 510 crore. While the erstwhile promoters exited the venture, it was decided that the use of the “Max” brand will be phased out over a period of two years and replaced with a suitable name. The Bupa brand name, however, would continue as before.

“Owing to a change in shareholding pattern, with the exit of Max India and entry of private equity firm True North, Max Bupa needed to create a new brand identity as part of the transition,” the company said in a statement.

Niva Bupa is one of the five pure-play health insurers in the country. Others in the space are Start Health and Allied Insurance, Care Health Insurance, Manipal Cigna Health Insurance, and, Aditya Birla Health Insurance.

“Under the new brand Niva Bupa, we will continue to expand our digital and network presence that will allow customers to avail our industry-leading products and best-in-class services anytime, anywhere,” said Krishnan Ramachandran, MD & CEO, Niva Bupa Health Insurance.

Niva Bupa aims to become a Rs 2,500 crore company by FY21-22 and is expecting to bring over 12 million people under the ambit of health insurance by FY25.

“With True North coming in, capital is no longer a constraint for growth. So, there will be significant investment in distribution for expansion, product development, and digital infrastructure,” Ramachandran told Business Standard. “From the customer’s standpoint, there is no change. So, the customer-centric ethos will certainly continue,” he said.

Last year, the company opened 50 offices and is planning to open another 50 offices this year. The ambition is to continue to open 50 offices in the foreseeable future because there is a sizeable opportunity in health insurance. The insurer has 13 bank partners, thus getting access to 35,000 bank branches through which it distributes its products. In addition to bank partners, the insurer also has tie-ups with non-bank partners, including digital non-bank partners.

“The whole idea is to become a pan-India player, having a presence in 600 cities and towns in the next 3-4 years, and achieve a gross written premium to the tune of Rs 2,500 crore, on the back of expansion in distribution channels, new products aimed at different customer segments,” said Ramachandran. In FY20, the insurer had earned a gross written premium (GWP) of Rs 1,240 crore and in FY21 the GWP was Rs 1,750 crore.

Between the first wave and the second wave, the insurer has paid around 26,000 covid claims, amounting to Rs 400 crore. The trend, however, has come down. In April - May, the number of claims the company received due to Covid exceeded the number of claims it received in FY21.