Generali Central Insurance Explores Location-Based Health Premiums and Cyber Risk Covers

Generali Central Insurance Company is exploring the introduction of a health insurance product that would link insurance premiums directly to the location of a policyholder.

According to MD & CEO KG Krishnamoorthy Rao, traditional health insurance products currently charge similar premiums regardless of where a customer lives or seeks medical treatment. However, hospital costs can vary significantly between different cities.

Generali Central Insurance, which operates as a joint venture between the Italy-headquartered Generali Group holding a 75.09 percent stake and the Central Bank of India holding 24.91 percent, is examining a product that factors in treatment locations.

Under the proposed structure, customers residing in higher-cost cities such as Mumbai could pay a higher premium. Conversely, policyholders in relatively lower-cost locations such as Nagpur could pay a lower premium.

The insurer noted that customers from lower-cost locations could face a co-payment or an additional financial contribution if they choose to undergo medical treatment in a more expensive city.

Rao stated that this approach could help align insurance premiums more closely with actual healthcare costs across different regions.

In addition to location-based health insurance, the private sector general insurer is exploring products designed to protect individuals against growing cyber-related risks. This includes potential coverage for financial losses stemming from unauthorized transactions or the misappropriation of funds from bank accounts due to cyber incidents.

The proposed cyber insurance products could be offered at varying coverage levels, with premiums adjusting according to the total amount insured. Company leadership highlighted that cyber-risk protection is becoming increasingly relevant as consumers conduct a higher volume of financial transactions digitally and face rising risks of online fraud.

Furthermore, the insurer is weighing the introduction of identity theft protection. Observing that identity theft is a relatively common risk in certain international markets, the company noted that victims often face legal and associated expenses to restore their identity or combat fraudulent activity. Introducing such a cover could potentially help policyholders meet these specific costs.

"The exploration of location-based pricing in health insurance reflects a strategic shift toward aligning financial products with localized economic realities. As healthcare costs diverge significantly between metropolitan centers and smaller cities, introducing flexible structures like co-payments and tiered premiums can create a more sustainable model for insurers. Furthermore, expanding portfolios to include cyber risk and identity theft protection addresses emerging consumer vulnerabilities in an increasingly digital economy." — Dr. Shishir Gupta, Founder & CEO, StartupLanes