Page 20 - Insurance Times June 2021

Cover Story

"HEALTH"

EMERGED AS

KING BUT

"MOTOR" OWNS

THE THRONE

D isruptions that have taken place as fallout of the cover Covid and fulfill the short term coverage needs of

covid-19 pandemic have reflected themselves in
individuals against the dreaded Corona virus. IRDAI asked
many ways. Change is the only constant and for
insurance companies to boost their online sales so that
the insurance industry, change is nothing new.
The industry is dynamic and changes with the changing policyholders can buy policies without stepping out from
their homes. As a result, more and more insurance plans
trends and demands of consumers. Even in these trying are being sold online for ease of buying.
times, when Covid numbers are breaking all records, the
IRDAI has brought about several consumer-friendly changes The KYC verification has also gone online as companies are
in the insurance industry. resorting to video calls and image uploads of KYC documents
for verification purposes. Keeping affordability in mind,
The need for health insurance was all the more emphasized IRDAI made health insurance premiums more pocket-
when Covid struck and people were increasingly being friendly by introducing the installment mode of payments.
hospitalized. Though normal health plans covered Covid, Now, health insurance plans are allowing individuals to pay
they excluded the cost of consumables which was high in their premiums in easy installments rather than in lump sum.
Covid treatments. That is why IRDAI directed health insurers This change has two benefits.
to launch Covid specific health plans and then Corona Kavach
and Corona Rakshak were born. These plans exclusively One, individuals would be able to afford a comprehensive
health insurance plan with an optimal sum insured level.
About the author Two, the popularity of health insurance would increase
thereby increasing their penetration too. General Insurers
Jagendra Kumar are benefiting from an uptick in retail health insurance that
Ex. CEO, grew by 31% y/y over 4mFY21 leading to a 13% rise in total
Pearl Insurance Brokers health insurance. This segment forms 14% of premium & is
Jaipur key to rise in total premiums. Moreover, claims have been

20 The Insurance Times, June 2021