Page 24 - Insurance Times May 2024

The Evolution of

Wellness-Linked

Insurance

Underwriting in India

Rohit Boda
Group Managing Director
J. B. Boda Group

Amidst the ever-shifting terrain of insurance underwriting, India is witnessing a transformative
evolution, particularly in the sphere of health and wellness. Departing from traditional methods
reliant on age, gender, and medical history, insurers are embracing innovative approaches that
intertwine wellness with underwriting.

A midst the ever-shifting terrain of insurance un- policyholders' health and lifestyle habits. This wealth of data
derwriting, India is witnessing a transformative
enables tailored insurance premiums and benefits, promot-
evolution, particularly in the sphere of health and
ing healthier behaviours and reducing the risk of chronic
wellness. Departing from traditional methods
reliant on age, gender, and medical history, insurers are diseases.
embracing innovative approaches that intertwine wellness Promotion of Preventive Healthcare: By engaging with
with underwriting. This shift towards wellness-linked under- policyholders proactively, insurers can prevent health issues
writing not only assesses an individual's current health sta- from arising, leading to cost savings for both insurers and
tus but also incentivizes and fosters healthier lifestyles. Com- healthcare systems. This preventive approach enhances
panies are experimenting with "Health Scores," akin to overall well-being and reduces the burden of preventable
"CIBIL" scores for credit health. The groundwork for this has diseases.
been laid through initiatives like "ABHA" - Health ID, under
the Ayushman Bharat Digital Mission [ABDM], by the gov- Empowerment & Accountability: Through active participa-
ernment. This shift towards wellness-linked underwriting tion in wellness programs, policyholders can lower premi-
promises numerous benefits for both insurers and policyhold- ums and access additional benefits. This mutual benefit fos-
ers, extending beyond risk mitigation. ters a sense of ownership over health and encourages in-
formed choices that positively impact well-being.
Advantages of Wellness-Linked Under-
Enhanced Risk Management & Customer Engagement: By
writing focusing on prevention and wellness promotion, insurers can
Utilizing Advanced Technology and Data Analytics: The mitigate financial risks associated with chronic diseases.
integration of wearable devices, health apps, and digital Moreover, personalized wellness initiatives enhance cus-
platforms allows insurers to access real-time insights into tomer satisfaction, retention, and brand loyalty.

22 May 2024 The Insurance Times