Page 39 - The Insurance Times May 2021
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government segment fell and the overseas segment was  income proofs. It has become one of those dreaded diseases
         virtually decimated. As per the latest data from GIC, nearly  because of the unpredictability.
         4.45 lakh claims worth Rs. 6,836 crore have been claimed
         on account of corona virus, of which insurers have settled  So, if a person has had COVID-19, it would be prudent on
         just 3.02 lakh claims worth Rs. 2,914 crore as of October  the part of insurers to carry out medical check-ups to find
         20.                                                  out whether there is any impact on the individual's health.
                                                              So, the risk of insuring someone who is already affected by
         As on 13 November, PM-JAY had issued 126 million e-cards  COVID-19 needs to be carefully evaluated and provided for.
         to individuals. Even if one assumes all these 126 million  Even before COVID-19, many reinsurers had increased
         individuals did not have any health cover previously, that still  premiums due to adverse mortality experience. The
         leaves about 1 billion Indians uninsured. While PM-JAY is a  regulator has allowed Up to 5 per cent revision in prices
         step in the right direction, its selection criteria is stringent,  based on the new inclusions in health products. Also, some
         based on data from the Socio-Economic Caste Census (2011),  companies may have raised rates other than that. According
         restricting eligibility. Large sections of vulnerable  to the Ministry of Health and Family Welfare, there were
         populations, especially migrants, are still unable to access  5.27 lakh active cases in India as on November 5. The
         health insurance. Any income shock from hospitalization can  number of people discharged was 77.11 lakh and 1.24 lakh
         plunge them into poverty. A significant expansion of health  died due to the pandemic. Insurers are already expecting
         insurance is necessary to provide a safety net to vulnerable  an increase in the loss ratio of the health portfolio. They
         households. For a business that thrives on medical   expect the loss ratio for the retail health policy to go up from
         uncertainty, the COVID-19 pandemic has provided a shot in  current 65-70% to 80%. Non-life insurers are seeing rising
         the arm for the health insurance industry in India.  demand for health policies under the Equated Monthly
                                                              Installment (EMI) option. Insurers attribute this to reduced
         The customer acceptance of technology needs to be    affordability due to a fall in income and job losses, even as
         retained even after the pandemic. Post COVID-19 the  the need for a cover has gone up due to the pandemic.
         financial and medical underwriting of life and health
         insurance in India is likely to become tighter with some  The industry is coming up with new digital health products
         restrictions in place. Medical check-ups may be mandatory  that the customers are wanting to test. There is a change
         to ensure that none of the vital organs is impacted. COVID-  in consumer behaviour because there is a genuine need for
         19 could have long-term effects and clarity is still required  the product. Insurers also see the distributors adapting to
         over its post-illness impacts. A new COVID-19 questionnaire  the new normal and serving the demands of our customers.
         has also been introduced as an additional piece of   All the initiatives taken by the industry towards digital
         documentation for life insurance buyers. Insurers will want  adoption are registering a lot of acceptance from the
         to do fully-fledged medical check-ups. In terms of financial  customers and a greater push from our distributor network
         criteria, earlier, for lower sums assured, companies relied  as well. Starting October 1, the Indian health insurance
         on self-declaration of income. Now, they would want to see  industry has seen a major revamp, resulting in health
                                                              insurance policies becoming far more customer-centric than
                                                              earlier.

                                                              References:
                                                              1. https://www.livemint.com/insurance/news/the-covid-
                                                                 19-boost-to-health-insurance-in-four-charts
                                                              2. https://economictimes.indiatimes.com/topic/STAR-
                                                                 Health-Insurance-Company
                                                              3. https://www.news18.com/newstopics/health-
                                                                 insurance.html
                                                              4. https://www.careinsurance.com/health-insurance/cr/
                                                                 health-insurance-plans-dk.html?agentId
                                                              5. IRDAI Annual Report 2019-20
                                                              6. Newspapers & Journals  T

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