“India has excellent hospitals and doctors, but poor insurance claim experiences,” said Alok Bansal, Co-founder and Executive Vice Chairman of PB Fintech, during a conversation at the Indian Mobile Congress in New Delhi.
Bansal, who co-founded Policybazaar and Paisabazaar, stressed that India’s healthcare and insurance ecosystem needs a fundamental realignment to truly serve consumers.
“Even though we have world-class hospitals, from an insurance customer’s perspective, the experience is subpar — and that needs urgent attention,” he noted.
Misaligned Incentives and Customer Experience Gaps
Bansal pointed out that misaligned incentives between insurers, hospitals, and service providers often result in frustrating experiences for customers during the claims process. According to him, service delivery in insurance often occurs inside hospitals or garages, but the structure fails to prioritize customer satisfaction.
He emphasized that this disconnect in India’s insurance ecosystem must be addressed to make healthcare more customer-friendly and effective.
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PB Fintech’s Foray into Healthcare: Launch of PB Healthcare
As PB Fintech looks beyond insurance, it has launched a new venture called PB Healthcare, aiming to integrate preventive, chronic, and hospital-based care into one ecosystem.
The company recently raised $218 million in a seed round, led by General Catalyst, with participation from PB Fintech and other investors. The funds will be used to set up four to five hospitals around New Delhi by 2027, and over time, expand to a network of 25–30 hospitals across 10 Indian cities.
“The aim is to get customers through a narrow network but give them wide coverage — from preventive care to post-hospitalisation,” Bansal explained.
Leveraging Technology and AI in Healthcare
Bansal revealed that technology and Artificial Intelligence (AI) will play a major role in PB Healthcare’s growth and efficiency.
“We are trying to do everything in-house with a lot of tech and AI involved. The next three to five years will prove whether we’re right or wrong,” he added.
This tech-driven model aims to improve service delivery, reduce inefficiencies, and offer better patient outcomes through data-driven healthcare solutions.
India’s Healthcare Capacity and Cost Challenges
Bansal also addressed India’s limited medical infrastructure, noting that the number of hospital beds per thousand people in India is far lower than in other developing countries.
While India offers quality treatment at a fraction of global costs, healthcare still feels expensive for local consumers.
“An open-heart surgery may cost ₹5–15 lakh in India compared to ₹2 crore in the US. Even then, Indian consumers find it costly,” he said.
He also welcomed private equity investments in healthcare, saying India urgently needs capital to expand its medical infrastructure. According to Bansal, around 30,000–35,000 new beds could be added in the next 3–5 years, mostly in tier-1 cities.
Encouraging Innovation with Supportive Regulation
On the regulatory side, Bansal praised India’s fintech regulation but emphasized the need for more room for innovation and experimentation.
“Our experience with regulators has been positive, but young companies need flexibility. If compliance becomes too strict early on, experimentation dies at the seed stage,” he cautioned.
Vision for the Future
Bansal concluded by highlighting PB Fintech’s broader mission to create long-term value for Indian consumers.
“India is complex — multiple languages, states, and demographics. Even solving one small part can create massive value for everyone,” he said.
With PB Healthcare, PB Fintech aims to redefine how healthcare and insurance work together — making access, affordability, and service quality truly aligned for Indian consumers.
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