COMPANIES

No Data Found

NEWS

No Data Found
Advertisement
Medi Assist eyes new acquisitions; to expand its footprint in Indian TPA market

Medi Assist eyes new acquisitions; to expand its footprint in Indian TPA market

The company is integrating its recent acquisitions into its technology-driven platform to offer consistent and efficient services nationwide.

Neetu Chandra Sharma
Neetu Chandra Sharma
  • Updated Dec 7, 2024 10:10 AM IST
Medi Assist eyes new acquisitions; to expand its footprint in Indian TPA marketThe TPA industry, which plays a critical role in managing health insurance claims and providing administrative services, has witnessed significant growth in recent years, largely driven by the increasing demand for health insurance.

Aiming to consolidate the fragmented Third Party Administrator (TPA) market in India, Medi Assist is focussing on strategic acquisitions to strengthen its position and expand its geographical reach.

The company is integrating its recent acquisitions into its technology-driven platform to offer consistent and efficient services nationwide. Along with the recent announcement to acquire Paramount Health Services, the company has made several other strategic acquisitions over the years. These include the acquisition of DHS TPA in 2016, Medicare TPA in 2018, Mayfair We Care in 2022, and Medvantage TPA and Raksha TPA in 2023.

Advertisement

The TPA industry, which plays a critical role in managing health insurance claims and providing administrative services, has witnessed significant growth in recent years, largely driven by the increasing demand for health insurance. According to NextMile Consulting (NextMSc) the industry was valued at approximately Rs 10,000-12,000 crore ($1.2-1.5 billion) in 2023. 

The industry is projected to grow at a compound annual growth rate (CAGR) of 15-18% from 2023 to 2028. As the health insurance sector continues to grow, Medi Assist is aiming to standardise services and expand its presence to meet the increasing demand.

“The number of players in the market has reduced from over 30 to fewer than 18, and there is now an opportunity for a well-capitalised, technology-driven company, like ours, to grow,” said Satish Gidugu, CEO of Medi Assist. “By acquiring smaller competitors and integrating technology, we are positioning ourselves to scale effectively in this space,” he added.

Advertisement

Medi Assist has a presence in more than 35 states and union territories and is working to enhance healthcare accessibility in regions where insurance services have been limited. “Insurance companies need partners who can offer national coverage while maintaining service quality. Our acquisitions help us extend our reach and meet this demand,” Gidugu explained.

According to Gidugu, Medi Assist has maintained stable financial performance with EBITDA margins around 23-24%, which slightly decreased to 21% following recent acquisitions. The company reported mid-teen profit margins after taxes and a Rs 300 crore cash position as of September.

“Medi Assist manages 21% of overall group and retail premiums in India with a significant 31% share of group premiums. It also boasts a 94-95% retention rate across 12,000 corporates. The company has consistently achieved 19-21% growth in insurance premiums and finances acquisitions through internal accruals. While organic growth has been a priority, acquisitions have also contributed to our strategic expansion,” said Gidugu.

Advertisement

The company’s expanded portfolio now includes services such as telemedicine, cashless hospitalisation and post-hospitalisation care, which enables Medi Assist to meet the diverse needs of both insurers and policyholders, the company said.

Looking ahead, Medi Assist plans to continue expanding, both geographically and by diversifying its services. The company is considering further acquisitions to strengthen its presence in underserved regions and is focussed on offering innovative health solutions for small and medium enterprises (SMEs) and employer health plans.

“We are building a long-term vision to transform the insurance claims process,” said Gidugu. “Our strong relationships with insurers enable us to offer scalable and effective solutions across the market.”

Despite its progress, Medi Assist is aware of the challenges in the health insurance sector. One of the key issues is the lack of standardisation across services, which can result in inefficiencies. “The Indian health insurance ecosystem is growing, but ensuring consistent service quality remains challenging. We aim to set high standards for ourselves and encourage others to follow,” Gidugu said.

The TPA industry still relies heavily on manual processes for claims management, which can lead to delays and frustration for customers. In response, Gidugu said, Medi Assist is focussing on automation to improve efficiency and transparency in these processes.

Advertisement

The company is investing in technology to enhance its platforms to automate the claims process, streamline customer service, and improve data analytics. “Technology will play a crucial role in the future of the TPA industry. The insurance ecosystem still faces challenges with fragmented and manual data management. We are working towards creating a unified digital solution to streamline these processes and provide valuable insights for insurers and policyholders,” Gidugu said.

Published on: Nov 28, 2024 1:12 PM IST
    Post a comment0