Page 5 - The Insurance Times May 2021

General Insurance News

Average sum insured Amit Chhabra, Head - Health Under the MoU, Gramcover will work
Insurance, Policybazaar, stated, "The on market research and identification
doubled to Rs. 2.2 million
pandemic has acted as a catalyst for of widely grown crops and need-based
in pandemic year increased awareness of health rural insurance products. It will also
According to a survey conducted insurance. People have realized its work on the feasibility report to assess
recently, the average sum insured for importance for unforeseen health- the suitability, requirement and
health insurance policies bought on the related situations and are now affordability of insurance products in
online insurance marketplace almost investing more in high sum insured each aspirational district. Gramcover
doubled to Rs. 2.24 million during the plans for advanced treatments." will explore marketing and distribution
channels and integration of
financial year 2020-21 against Rs. 1.14 Demand for plans with higher sum
million in FY19-20. insured (more than Rs. 25 lakh) also underwriting process, and claim
settlement protocols, i.e., from market
The survey, which looked at how the witnessed a jump of 40% over the last requirements to issuance of policies to
COVID-19 pandemic has impacted financial year. The survey also showed claim settlement.
consumer sentiment and purchase that there was a 150% jump in The Agriculture Insurance Company of
triggers when it comes to health requests from policyholders to port India will work on development of
insurance plans, found a sharp increase their existing health insurance plans to
in awareness and demand for high the higher sum insured (more than Rs. need-based rural insurance products
cover protection policies. 25 lakh) from lower covers ( Rs. 5-10 and streamline the underwriting
lakh). process and channel partner app. It
On the claims filed during the year, the will integrate the underwriting process
survey found that in April, 2020, of the and claim settlement protocols from
total claims reported, only 4% were Agriculture Insurance market requirements to issuance of
related to COVID-19. However, as the Company of India joins policies to claim settlement.
pandemic peaked in September, 2020, Jatin Singh, Founder & MD,
the proportion of COVID-related claims hand with Gramcover for Gramcover, said that there is a need
increased to around 40% of the total rural insurance to vastly expand rural insurance as
claims. The number of claims steadily The Agriculture Insurance Company of there is minimal coverage in rural
increased from 8% in May to 23% in India Limited has recently collaborated India. "The insurance products of rural
July and to 34% in August. with Gramcover to collectively enhance India lack diversity and therefore the
According to the statement, "The rural insurance penetration. It will number of people covered under these
overall trend depicts how health achieve this by utilizing the expertise products get reduced. This is the final
insurance in FY20-21 was amongst the of Gramcover in rural insurtech space. frontier of financial inclusion and we
most sought-after investment The partnership aims to target 25 think through our effort, due to
instruments, leapfrogging all other million farmers across the aspirational Gramcover's reach and AIC catchment,
insurance categories." districts. we will reach 25 million farmers."

The Insurance Times, May 2021 5