Health insurance companies anticipate good business this financial year

With many people registering for health insurance policies following the outbreak of the virus, insurance firms are anticipating a huge increase in their businesses in the financial year 2020-21 and are preparing for more customer essential products. 

An officer from SBI General Insurance stated, “This is not a particularly good year for insurers, but post-COVID-19, there will be a major shift in the insurance priorities of customers. There will be a boost in the number of subscribers. We expect good business in FY21.” 

The SBI General Insurance lately started a standard health insurance policy called the ‘Arogya Sanjeevani Health Insurance Policy SBI General Insurance’. The policy offer hospitalization cover anyplace in India with the amount insured is Rs 1-5 lakh range, considering the rural and tier-II and tier-III cities.

Presently, most of these COVID-related products are benefit-based, where the advantage, equivalent to the total insured, is paid on the occurrence of the circumstance irrespective of the figure incurred. In the case of quarantined patients, the policy provides up to 50% of the amount insured if it does not lead to identification. Moving ahead, all companies are planning to introduce such products for smaller towns. 

General insurers have obtained 900 claims for over Rs 18 crore towards virus treatment till Monday, as per the General Insurance Council, the official representative body of the domestic general insurers. General insurers have informed a 10 percent YoY decrease in premiums in March 2020 comprising of all sections. Although, standalone health insurers informed stable growth in premium (up 8 percent YoY).

This sector anticipates that post-virus, health insurance will possibly report strong progress over the next quarters. The success rate will be best amongst standalone players. One more reason for even more individuals opting for insurance is this anticipated increase in the value of general healthcare. 

A doctor at Max Hospitals stated, “There will be certainly an increase in healthcare cost. Forget corona, even the costs of general medicare is surging. Individuals admitted for regular surgeries are being levied Covid-19 charges. With regular outpatient departments shut and elective surgeries postponed, hospitals’ revenues are hit.”

As medical prices are going to elevate, the foreseen hike in the price of general healthcare is another reason for more people choosing for health covers. Hospitals charge corona fee for normal surgeries as well, as a result of closed regular OPDs and elective surgeries delayed, their incomes are hit. 

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