Covid-19 creates unprecedented awareness on need for health insurance

The insurance industry, although marred by sudden rise in insurance claimant, is also witnessing higher gross and net income growth in India. The second wave of the deadly pandemic has pushed the industry to adopt a more robust approach towards insurance claimants, settlement and health coverage for first time buyers. Although, Covid Insurance has seen an exponential rise in demand, non-Covid Insurance such as motor claimant has taken a dip. Sanjay Datta, Chief-Underwriting, Claims and Reinsurance, ICICI Lombard General Insurance, the largest private general insurance company in the country, spoke with Bizz Buzz on the current insurance market trends, the does and don'ts on buying health insurance and bridging the gap between critical healthcare services and its customers

Critical care is no longer limited to mere hospitalisation. With lesser availability of hospital beds, more and more families are opting for home healthcare services such as home ICU. What do you think the role of health insurance policies (apart from covid insurance) can be given the increasing number of home treatments?

Health insurance payers were looked at mere risk bearing entities that paid the claim. The pandemic has changed the role of a health care insurance company to a care coordinator for member. Insurance companies now provide medical advice to patients using our health assistance services. Tele consultations and arranging for cashless home health setup is another area that payers are coordinating for delivery of care. Payers are becoming the connecting link between a patient and care provider/ hospital.

With the changing dynamics (variants) of infectious diseases and access to the medical resources, does the health insurance provisions need to be reanalysed by the government bodies (IRDAI) and insurance companies for both first time insurance buyers and for claimants.

IRDAI is amongst active and progressive regulators and is constantly innovating to make products better and serve the first time buyers and claimants.

What is the common mistake made by most first time health insurance buyers in India?

Understanding what you are buying is critical before any buying decision, once you buy a policy use the free look period to understand what are you covered for. Health insurance policies are being simplified and we constantly try to simplify however understanding what the coverage is the most critical piece to avoid coverage gaps.

The second wave impact was rather unprecedented. With more focus on the health segment, non-life insurers revenues' have dipped in the first quarter of the new financial year. Your take on it.

Health insurance in India has a long run way and what the pandemic has done is created unprecedented awareness on need for health insurance. It has also made people realise what cost of care is and need for higher sum insured.

Covid-19 does not qualify as chronic disease but its insurance certainly involves a lot more scrutiny by insurance companies, especially on renewals and claimants. Your take on it.

We are in early stages to identify long term impact of Covid-19 on individuals health, it's a global issue. As the studies progress and further data is available, we will review the same.

In some cases, people who have recovered from Covid might need to wait up to six months before applying for a new health or life insurance. Given the fact that people may get reinfected with Covid within a year, what can be done to make it easier to access health/ life insurance? Do new Covid variants mean a new health insurance approach to be considered (such as eligibility, different premium packages?)

These are insurer specific rules, we are in early stages to identify long term impact of Covid-19 on individuals health, it's a global issue. As the studies progress and further data is available, we will review the same.

There are fewer options now for lower income groups to choose between private and government hospitals given the limited resources (hospital beds). Thus, putting them at a higher risk againstout of pocketexpenses. How can private insurers come to aid for population groups residing in tier 3 cities and rural areas?

Private insurer offer Arogya Sanjeevani product that's a standard product specifically created for these target market. We urge all to have the health insurance coverage as healthcare cost one of the leading reason for bankruptcy and pushing people in debt.

Many hospitals across India are not offering cashless treatment when it comes to Covid. What is your take on this?

We are working with our providers to ensure that cashless treatment is honoured and have had no major challenges in the same. In an instance when bed is not available, we understand that admission is denied but that does not mean cashless treatment is denied. We have a strong working relationship with our providers and have active line of communication with them to ensure no such instances happen.

ICICI Lombard General Insurance Company

The non-life insurance company offers motor, health, travel, business, personal accident, and home insurance, as well as claim settlements and renewal services. For financial year (FY) 2020-21, in March quarter (Q4), the company has posted a 22.6 per cent year-on-year (YoY) rise in its net profit at Rs 345.68 crore. In 2020 as well, in the first wave of Covid pandemic, the company's FY 2019-20 net profit was recorded at Rs. 346 crore, an increase of 23 per cent. The company is in the midst of acquiring the general insurance business of rival Bharti AXA General Insurance. The Insurance Regulatory and Development Authority (IRDAI) gave its in-principle approval for the deal. The Competition Commission of India has also approved the deal. A day after receiving principle approval, the company's share hit all-time high of Rs 1,500 rising 3.04 per cent intra-day trade as of December 1, 2020.