COVID-19 impact: Here’s why insurance may never be the same again
The COVID-19 impact on insurance companies too have now start to create products for a world where such virus outbreaks.
Recent outbreak of diseases like COVID-19 has led to more awareness among people towards insurance.
a majority of them are now considering it as a necessity to be ready for such unforeseen situations
Corona virus pandemic in India, only 10% of people were interest in buying insurance to cover healthcare emergencies including infectious.
Health insurance as a necessity to fight unforeseen pandemics like COVID-19.
Corona virus outbreaks could become the new normal after many businesses were out in the cold during the COVID-19 crisis.
New pandemic-proof offer businesses the chance to insure against disruptions and losses should another pandemic strike.
Opportunity by either adding this coverage to existing products or by creating something new to cater to such risks.
Corona specific health insurance products
COVID crisis and to make sure that maximum people are cover under some kind of health insurance cover against COVID-19.
IRDAI, general and health insurers have started offering two standard products the Corona Kavach an indemnity based health plan & Corona Rakshak.
A fixed benefit health insurance policy for covering the treatment costs of COVID-19.
Health insurance needs of the larger public for COVID-19 by offering a common set of policy wordings.
Customers can either buy these policies through the insurer’s websites, online web aggregators or directly approach the branch offices or agents of the insurance companies.
These policies can buy for as low as Rs 100 – Rs 200 per month.
Since most companies have adopted work-from-home policy due to the ongoing COVID-19 pandemic there has been a drastic nationwide reduction in the number of kilometers we drive.
From mid-March through August first week, the total number of kilometers driven is down by more than 50 % countrywide.
Expecting this, usage-base motor insurance policies were introduce a few weeks ago increasingly adopt.
This new type of car insurance policy, launched by different insurers, allows car owners to insure their vehicles for kilometers.
This is hence very useful for those who see a reduced usage for their car this year and would like to avail discounts consequent to the lower usage.
The insurers too see this as a win-win outcome as cars that are use less also tend to show a lower chance of a claim.
The introduction of pay-as-you-use is probably a significant shift in the history of motor insurance in India .
The shift has been anchor by the uncertain times we live in when unnecessary journeys are discourage by the government.
Organizations & employees alike are discovering the benefits of working from home.
Insurance penetration in the overall sector by bringing more and more vehicles under the insurance umbrella.
Insurance through telemedical
COVID-19 impact have underlined the role that technology can play in underwriting of both life and health insurance policies.
Telemedicine has now emerge as a faster, safer and most secured way to clear issuance of insurance policies for the consumers in the current environment.
Telemedical assessment is therefore increasingly becoming the norm and it will only become easier and more widely accepted in the coming years.
While taking health insurance policy through telemedical assessment, one will be required to make a declaration about their health condition.
Under this method, one can buy a Health Insurance cover of up to Rs 1 crore.
On the other hand, under life insurance, under the telemedical setup, a cover of up to Rs 2 crore can now be bought.
The telemedical process is completely regulate by the IRDAI and is reliable from the customer’s point of view.
Digital transformation in insurance sector
Over the last few months, digital technologies have been transforming the insurance industry globally.
While the recent engagement of insurers on digital platforms through apps & social media has allowed them to reach and engage customers directly.
A significant revolution has happened in the background through the adoption of e-KYC.
Cloud infrastructure that has enabled the insurers to service the customer like never before.
Today, insurers are giving utmost importance to the digitalization of the core business processes.
data and digital technologies that are promising to help the insurers serve as well as understand their customers better.
The pandemic has ensured that they are already on their way to turning into reality & this means that the digital customer has only better choices to expect in the coming months.