Covid-19 Boost to Health Insurance

The covid-19 boost to health insurance, in four charts

The covid-19 boost to Health Insurance pandemic has provided a shot For a business that thrives on medical uncertainty.

The prospect of hospitalization due to covid-19 & high medical costs in private hospitals have driven more Indians to sign up for private health insurance.

Covid-19 Boost to Health Insurance

This has caused a shuffle, albeit temporary & in the pecking order of portfolios of non-life insurance companies.

Health insurance became the most valuable segment for non-life insurers in terms of premiums collected & leapfrogging motor insurance.

This is happening for the first time since the industry was open to private players about 20 year ago.

In the first half of 2020-21, health premiums occupied top spot in non-life segment

According to the General Industry Council, an industry body, health insurance accounted for 29.7% of premiums collected by non-life insurers in the first half (April to September) of 2020-21.

Motor insurance came in a close second, with 29% of premiums. In 2014-15, the share of health was 23.4% and motor 44.4%.

The recent primacy of health insurance is partly because sales of new vehicles halted during the lockdown, and even now are struggling to match pre-covid levels.

Motor insurance premiums dropped 13.8% on a year-on-year basis the second-highest fall among the 10 main non-life segments.

Health insurance premiums grew 15.8% in the same period the second-highest growth among these 10 segments.

Covid-19 Boost to Health Insurance

In the post-pandemic phase, the momentum came from individuals buying policies.

Premiums paid on individual policies increased by 34% in the Apr-Sep period compared to the year-ago period, against 16% on group policies.

As a result, the share of individual policies in the health premium pie increased from 36% to 41%.

Individual policies drove health premiums this year

While health insurance as a segment gained, not all companies grew.

Of the 32 non-life insurers in the health segment, nine registered negative growth in premiums.

Barring Bajaj Allianz and Care Insurance, these were mostly fringe players, with a collective share in premiums of about 10%.

The top five companies, by market share, all registered positive growth, but at varying levels.

United India Assurance & Star Health Insurance grew their health premiums 58% & 46%, respectively.

The leader in health, New India Assurance, grew only about 5%.

Some companies may have been circumspect in the risk they take on. Among the non-life segments, health scores lower on profitability.

According to data from the insurance regulator, between 2014-15 and 2018-19, companies paid an average of 96 as claims for every 100 they earned as health premiums.

By comparison, they paid out 84 in their motor portfolio and 81 in their fire portfolio.

While covid-19 might have caused a spurt in demand for health insurance, this is a drop in the ocean.

Results from the last National Sample Survey (NSS) study on health expenditures, conducted between July 2017 and June 2018.

Show that about 86% of individuals in rural areas and 81% in urban areas had no health cover.

That’s about 1,135 million Indians.

Covid-19 Boost to Health Insurance

A large majority of Indians have no health insurance coverage

This leaves room for growth for insurers, provided they can tailor pricing and packaging of policies to cover the masses.

One such effort came from the Centre in September 2018, in the form of the Pradhan Mantri Jan Arogya Yojana (PM-JAY).

This scheme aims to provide about 107 million poor and vulnerable households (or, about 500 million individuals) with an annual health cover of 5 lakh per family.

All states barring Telangana, Odisha and West Bengal are participants.

As of 13 November, PM-JAY had issued 126 million e-cards to individuals.

Even if one assumes all these 126 million individuals did not have any health cover previously, that still leaves about 1 billion Indians uninsured.

While PM-JAY is a step in the right direction, its selection criteria is stringent, based on data from the Socio-Economic Caste Census (2011), restricting eligibility.

Large sections of vulnerable populations, especially migrants, are still unable to access health insurance. Any income shock from hospitalization can plunge them into poverty.

A significant expansion of health insurance is necessary to provide a safety net to vulnerable households.


Follow us on INSTAGRAM:

33 Instagram Marketing Statistics for 2018 | DrumUp Blog

Follow us on FACEBOOK:

37 thoughts on “Covid-19 Boost to Health Insurance

  1. You possess a specialised skill. Your posting skillfulness are really superior. Kudos for promoting web content on the internet and schooling your followers.

  2. I journal often and I truly enjoy your material. This exceptional write-up has honestly actually peaked my interest. I am mosting likely to book mark your web page and also keep checking for new information pertaining to as soon as a week. I opted in for your RSS feed also.

  3. I precisely wanted to thank you so much once again. I am not sure the things I would have carried out without the actual smart ideas provided by you concerning such subject matter. It was before an absolute frightful dilemma in my position, however , looking at a specialised form you managed that took me to jump over happiness. Now i’m happy for this advice and then believe you recognize what a great job you were accomplishing educating many people all through your webpage. I am certain you’ve never met any of us.

  4. Interesting blog! Is your theme custom made or did you download it from somewhere? A design like yours with a few simple adjustements would really make my blog shine. Please let me know where you got your theme. Cheers

  5. This is one of the best survival games. In Don’t Starve Together, you and your partners have to protect the protagonist of this game from the monsters. Also, search for every resource which is common in each survival-based game. The game runs from day to night, and in this game your world will randomly appear with new enemies. Updated August 2021: We’ve added four titles, including It Takes Two and Overcooked! All You Can Eat. Enjoyed this article? Stay informed by joining our newsletter. Though online multiplayer is highly favored in the gaming industry, we’re always on the lookout for the best local multiplayer games. We’ve come a long way since the days of the original PlayStation, and not without a few sacrifices. Chiefly among them; local multiplayer. Remember the tension in the air when a game of Tekken 3 between two friends reached the Final Round? Sure, there were casualties – controllers, TV screens, framed pictures – but the experience is one a lot of gamers remember fondly.
    Klondike Solitaire is a solitaire fan favorite, this free online solitaire game provides fluid solitaire fun for the whole world! Plus, if you ever have a solitaire snafu the undo button is just a click away! To say it correctly you treat it as two separate words that are joined together. This will allow you to correctly accent the two parts of Mahjong, while ensuring that you pronounce it as one word. Spider: Eight columns of cards await your attempts to clear them with the fewest moves possible. More free games by TreeCardGames: DISCLAIMER: The games on this website are using PLAY (fake) money. No payouts will be awarded, there are no “winnings”, as all games represented by 247 Games LLC are free to play. Play strictly for fun. Unlike the other Patience Soliatire games that have been played on so far, there are three cards dealt at one time in 3 Card Patience instead of just one card. Solitaire is an exciting way to pass the time – anywhere, any time.

  6. Woah! I’m really digging the template/theme of this blog. It’s simple, yet effective. A lot of times it’s very hard to get that “perfect balance” between user friendliness and visual appearance. I must say you’ve done a amazing job with this. Also, the blog loads very quick for me on Safari. Outstanding Blog!

  7. With havin so much content do you ever run into any problems of plagorism or copyright infringement? My website has a lot of exclusive content I’ve either written myself or outsourced but it seems a lot of it is popping it up all over the internet without my agreement. Do you know any solutions to help prevent content from being ripped off? I’d really appreciate it.

  8. Have you ever thought about adding a little bit more than just your articles? I mean, what you say is important and everything. But think of if you added some great visuals or videos to give your posts more, “pop”! Your content is excellent but with pics and clips, this site could definitely be one of the very best in its field. Terrific blog!

  9. It is the best time to make some plans for the future and it is time to be happy. I’ve read this post and if I could I wish to suggest you some interesting things or advice. Maybe you could write next articles referring to this article. I want to read more things about it!

  10. Hi! Quick question that’s completely off topic. Do you know how to make your site mobile friendly? My weblog looks weird when browsing from my iphone 4. I’m trying to find a theme or plugin that might be able to resolve this issue. If you have any suggestions, please share. Many thanks!

  11. Today, I went to the beach with my children. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is totally off topic but I had to tell someone!

  12. Have you ever considered about including a little bit more than just your articles? I mean, what you say is important and all. But think of if you added some great pictures or video clips to give your posts more, “pop”! Your content is excellent but with images and video clips, this website could definitely be one of the very best in its niche. Great blog!

  13. Hello there I am so glad I found your blog page, I really found you by accident, while I was browsing on Askjeeve for something else, Anyways I am here now and would just like to say thank you for a marvelous post and a all round interesting blog (I also love the theme/design), I dont have time to read through it all at the minute but I have book-marked it and also added in your RSS feeds, so when I have time I will be back to read more, Please do keep up the superb work.

  14. Hi would you mind letting me know which web host you’re working with? I’ve loaded your blog in 3 completely different web browsers and I must say this blog loads a lot faster then most. Can you suggest a good hosting provider at a reasonable price? Kudos, I appreciate it!

  15. Heya im for the first time here. I came across this board and I find It really useful & it helped me out a lot. I hope to give something back and help others like you aided me.

Leave a Reply

Your email address will not be published. Required fields are marked *