Why HDFC Ltd’s acquisition of Apollo Munich spells good news for health insurance seekers


The health insurance industry in India is the fastest-growing segment in the non-life insurance sector. A 2019 report on India Health and Medical Insurance Market by Mordor Intelligence stated that the industry registered a CAGR of 23 percent for the past 10 years. The sector has witnessed an increasing number of new private health insurers entering the market.

Among the major drivers contributing to the increased interest among private players is the fact that there is a growing awareness among the public on healthcare. The other significant contributing factor is that Indians are increasingly choosing private hospitals over public healthcare institutions, due to quality and sophisticated treatment.

HDFC ERGO Health Insurance: Benefiting customers like none other

HDFC ERGO HEALTH Insurance Ltd is a joint venture between HDFC Limited, India’s premier Housing Finance Institution and ERGO International, the primary insurance entity of the Munich Re Group. HDFC ERGO Health Insurance provides access to a larger-combined product suite offered by entities - HDFC ERGO Health, HDFC ERGO General, and existing products of Apollo Munich. The key benefits passed on to the existing and new customers include:

  • Cashless claims at 10,000+ network hospitals
  • No sub-limits on hospital room rents, hospital expenses, specific diseases and doctor fees
  • Income Tax benefits under Sec 80(D)
  • Medical expenses for 586-day care procedures covered
  • Pre-hospitalisation expenses up to 60 days and post-hospitalisation up to 180 days
  • Domiciliary medical treatment

A ‘good news’ for India

It was in January this year that HDFC and its subsidiary HDFC ERGO acquired a majority shareholding in Apollo Munich for ₹1,495.81 crore after approvals from the Competition Commission of India, the RBI and the Insurance Regulatory and Development Authority of India. Subsequent to the acquisition, Apollo Munich Health Insurance Co Ltd has been renamed as HDFC ERGO Health Insurance Ltd (HDFC ERGO Health) and will operate as a subsidiary of HDFC Ltd.

Commenting on the acquisition, Anuj Tyagi, MD and CEO, HDFC ERGO Health Insurance Ltd said, “The acquisition of Apollo Munich Health Insurance by HDFC Ltd., led to the creation of a new entity, HDFC ERGO Health Insurance. This merger will provide significant benefits to our existing & prospective customers. Trust, transparency and fairness across all stakeholders are at the core of the entire HDFC Group and it is a promise by HDFC ERGO Health leadership to each one of our policyholders. Further, many of HDFC ERGO General’s best practices, including 10,000+ cashless network hospitals, industry-leading turnaround time for cashless claim settlement, seamless online policy issuance and 24x7 customer service helpline are being adopted by HDFC ERGO Health to provide a significantly better experience to all our customers.”

Bad News – Good News

To break the news of the landmark acquisition, HDFC Ergo Health Insurance launched its new brand campaign 'Bad News - Good News' on February 7, 2020. Conceptualised by Mullen Lintas, the brand roped in Bollywood celebrity Nawazuddin Siddiqui to convey this news through two humorous campaign videos around individuals who have encountered health emergencies.

"Our new TVC has been strategically executed to ensure customers are made well aware of the benefits this acquisition has to offer them. We hope to deliver this ‘Good News’ and make our existing & new customers feel better,” said Anuj Tyagi.

Honing binary journalist roles, one Nawaz reports 'Bad News' that they have to face as a result of the emergency, while the other Nawaz is the bearer of 'Good News'.

Highlighting Apollo Munich’s expertise and HDFC’s trust, the campaign seeks to create awareness about the wide suite of benefits available to customers as a part of the acquisition.

With HDFC Ergo Health Insurance's good news, India is now feeling better. It’s time to make space for some good news too in your life! Click here to know more.


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