Health Insurance Hazards

players will face initially before the industry actually takes off.

When finance minister P Chidambaram came out with his Budget announcement about the privatisation of the health insurance segment, he wasnt making the choice of an entry point at random. Industry watchers unequivocally declared that the aim behind opening up the health sector first was obvious. Says Venkatesh Chakravarty, associate director, KPMG Peat Marwick (India): Health insurance is a small part of the insurance sector, and opening it up will strengthen the local companies in the industry. This needs to be done before the entry of competition in the sector as a whole.