Page 13 - Insurance Times December 2023

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US inflation to rise due Poor air quality could revi- "The deteriorating air quality index
(AQI) will not only affect the lungs and
to health insurance talize the health insurance result in respiratory disorders but also

A popular US inflation measure is industry. cause other long-term problems,"
projected to see a tiny increase The country's declining air quality will states Siddharth Singhal, business head
due to a revision in the probably cause general insurance pro- of health insurance at
government's estimate of health viders to witness an increase in de- Policybazaar.com. Many of the clients
insurance prices. This reversal of mand for health insurance in the up- we visit are worried about their health.
trend follows a period of relief in coming months. They are purchasing health coverage."
recent months. As a result of increased awareness fol- The majority of India's major cities
A few modifications to the way the lowing the epidemic, the health insur- have severe, moderate, or poor air
quality (AQI) values. Although the situ-
Bureau of Labor Statistics tabu- ance market experienced significant ation in Delhi-NCR is dire, air pollution
lates the category will be imple- expansion. The segment expanded by is also getting worse in certain other
mented starting with the October 24.4% to Rs 54,713.52 crore in the first major cities, including as Mumbai.
release of the consumer price in- half of the 2023-24 fiscal year from Rs
43,981.54 crore in H1FY23, propelling Health risks arise from the declining
dex. The new technique will try to
the expansion of the non-life insurance quality of the air, particularly for
smooth out some of the volatility
and minimize time lags in the in- sector. One of the main contributing people who have respiratory condi-
dex in addition to a routine adjust- factors was the increase in group tions. It even results in hospitalization
health insurance premium costs. in certain instances. Demand will also
ment in the source data. The new
calculation is expected to drive up The health insurance sector saw tre- be supported by a rise in health-related
awareness brought on by a spike in
the headline CPI, at least tempo- mendous growth in H1FY24 as a result claims throughout the winter.
rarily, after serving as a consistent of increased awareness following the
brake on overall inflation for the pandemic, with industry premiums
previous year. It will also increase soaring 120% from Rs 24,864.01 crore Heath Cover details to be
in the first half of FY19-20.
the inflation of a more limited col- available in single page
lection of services, namely housing In the health sector, the group health from January next year
and energy. segment premium increased by ap-
proximately 27% in H1FY24, from Rs In addition to having a 15-day window
Although it computes it using inde- to cancel a policy, come January 1st
23,316.04 crore to Rs 29,537.57 crore
pendent price index numbers you will be able to swiftly peruse the
over the same period in the previous
found in the personal consumption small print of a health insurance policy,
fiscal year. In contrast, over the same
expenditures and income report, which will be provided in a straightfor-
period, retail health premium in-
the Federal Reserve closely moni- creased by 18.39% to Rs 18,784.82 ward page.
tors so-called core services.
crore from Rs 15,867.31 crore. Health insurance policies are expected
The Insurance Times December 2023 13