Health Insurance Companies See 40% Jump Sale of Policies During Coronavirus Lockdown

India imposed a lockdown a week ago to stop the approaching threat of the spread of the novel coronavirus. But as the number of coronavirus positive patients is increasing gradually, the health insurance companies are witnessing an increased demand for health and life insurance policies.

Although the insurance industry witnesses similar trends during March as people tend to invest more in health insurance plans before the end of the financial year, this year the growth is even higher. It was recorded a 10% increase on an average during the last few years, as compared to 40% this year.

Digit Insurance saw a 50% increase in the sales of its comprehensive health insurance plans per day during the lockdown in march as compared to in January. With its exclusive health insurance plan dedicated to coronavirus, the insurer has received a good response from the potential customers.

Keeping aside digital players, the trend seems to be opposite for the traditional health insurance companies which rely on agents for sales. For instance, Star Health Allied Insurance has witnessed a decline in the sale of policies by up to 50%. This has made the traditional insurers realise the need to push sales more digitally.

How health insurance companies are keeping the customers at ease

Insurers like Max Bupa, HDFC Ergo, and Religare are working to ramp up the telemedical services ahead of anticipated increases in product demand. The distributor, as well as insurers, are planning to deploy more physicians and healthcare professionals to address the patients over a call thereby reducing the need for visiting healthcare centers during the lockdown.

As the Managing Director and Chief Executive Officer of Raheja QBE General Insurance says, "In the current situation, it is difficult to get the pre-medical tests done for buying the insurance cover. In light of the above, we have started tele underwriting of the cases which fall under the category of medical tests and taking decision case to case. Generally, the cases which fall under this category are less than 15%.”

Other insurers like Max Bupa and Star Health are also managing operations in order to provide the utmost help to the customers. Max Bupa has asked the policyholders to seek online assistance regarding claim settlement, policy renewal, and other information required. It is also planning to start Home Health programs for the customers in the near future.

On the other hand, Star Health Allied services have come up with ‘Star Novel Coronavirus Insurance Policy’. It is a dedicated health insurance plan for coronavirus, the benefits of which can be taken by an insured person who has been tested positive for the virus and requires hospitalisation. The policy also covers those with international travel history.