Page 33 - The Insurance Times May 2021
P. 33
HOW HEALTH
INSURANCE IS
BECOMING A
PRODUCT FOR
ALL SEASONS
I ndia is among the 15 worst COVID-19 affected economy stabilizes by 2022. The insurance industry rides on
economies. COVID-19 which began as a health crisis
the back of other industries. Hence, unless the overall
economy bounces back or the insurance industry finds
has now taken over as a financial one. With the global
economy crashing and multiple sectors taking a major
financial hit, the insurance industry has become a vital part business in hitherto uncovered areas, the industry is likely
to struggle in maintaining its momentum. The COVID-19
of the new reality of the economy. Since General Insurance crisis has given rise to both immediate and potential
undertakes the valuation of assets and businesses as well as challenges for the insurance industry in near future. The
their overall economic activity, it is benchmarked with the COVID-19 pandemic has been a game-changer for the Indian
GDP of a country to measure the insurance penetration. life industry as it has managed to reinvent itself quickly by
Hence, a large proportion of the General Insurance sector adopting digital processes in all its operational areas.
is dependent on the performances of industries and
individual businesses. The pandemic has reminded everyone of how vulnerable
they are and the need for people to adjust and adapt to
So with the lockdown causing a hitch in the business sector, the way they work and do things. The market has seen a
the General Insurance market has subsequently suffered. proliferation and adoption of new technology over a short
The overall sector is believed to look up as the global period of time. Technology that the industry was planning
to adapt over the next five years has been implemented in
a few months' time. The market was seeing a rapid increase
About the author in the acceptance of digital payments, including by the older
generation.
Jagendra Kumar
Ex. CEO, India traditionally has been an underinsured country when
Pearl Insurance Brokers it comes to Health Insurance. However, with Government
Jaipur initiatives such as Ayushman Bharat which aims to insure
The Insurance Times, May 2021 33