AgenciesMUMBAI: Insurers are seeing a sharp increase in inquiries on health insurance policies, with customers seeking protection against Covid-19 that has already infected about 93,000 people around the world. Queries on new policies have increased up to 40% since fresh cases of the virus were detected in Delhi and Agra.
But the impact on pricing for new policies will be negligible as actuarial models generally factor in historical data. However, businesses of several health and travel insurers could be hit if the virus were to significantly impact India, industry players told ET.
“We have seen enquiries on health insurance policies from customers rise nearly 30-40% over the past few days,” said Amit Chhabra, business head, health insurance, PolicyBazaar. “A standard health insurance policy will cover all post-hospitalisation covers. Right now, pre-hospitalisation costs, such as check-ups, are being incurred by the government.”
In India, tests for Covid-19 are free. But hospitalization expenses for confirmed cases must be borne by the patients themselves. However, in the case of a patient covered with a standard health product, the insurer will cover for a patient’s hospitalization expenses including surgical procedures, room rent and ambulance costs, only if it is for a minimum of 24 hours.
“Globally, we have seen in such cases that impact large populations, there is an increased push from consumers to get themselves covered. We have seen the same happen here as well in the wave of fresh cases being detected,” said Pankaj Verma, head, market underwriting operation, SBI General Insurance. “We as insurers are currently mapping the situation on two fronts: The particular areas where impact is the most, and the preventive measures that can be taken.”
Covid-19 has now spread to more than 70 countries, with its epicentre in China. Meanwhile, some insurers are also creating standalone coronavirus covers. Insurance startup Digit on Tuesday announced a policy that allows a person to insure themselves for a sum assured from ?25,000 to ?2 lakh. The policy pays out 100% of the sum insured as a lump sum if one is diagnosed and 50% if quarantined in a government or military hospital.
Separately, business of travel insurance is also being hit as foreign trips are being cancelled and events being rescheduled. “The impact on the business is more from a standpoint of significant reduction in policy volumes,” said Verma.
But the impact on pricing for new policies will be negligible as actuarial models generally factor in historical data. However, businesses of several health and travel insurers could be hit if the virus were to significantly impact India, industry players told ET.
“We have seen enquiries on health insurance policies from customers rise nearly 30-40% over the past few days,” said Amit Chhabra, business head, health insurance, PolicyBazaar. “A standard health insurance policy will cover all post-hospitalisation covers. Right now, pre-hospitalisation costs, such as check-ups, are being incurred by the government.”
In India, tests for Covid-19 are free. But hospitalization expenses for confirmed cases must be borne by the patients themselves. However, in the case of a patient covered with a standard health product, the insurer will cover for a patient’s hospitalization expenses including surgical procedures, room rent and ambulance costs, only if it is for a minimum of 24 hours.
“Globally, we have seen in such cases that impact large populations, there is an increased push from consumers to get themselves covered. We have seen the same happen here as well in the wave of fresh cases being detected,” said Pankaj Verma, head, market underwriting operation, SBI General Insurance. “We as insurers are currently mapping the situation on two fronts: The particular areas where impact is the most, and the preventive measures that can be taken.”
Covid-19 has now spread to more than 70 countries, with its epicentre in China. Meanwhile, some insurers are also creating standalone coronavirus covers. Insurance startup Digit on Tuesday announced a policy that allows a person to insure themselves for a sum assured from ?25,000 to ?2 lakh. The policy pays out 100% of the sum insured as a lump sum if one is diagnosed and 50% if quarantined in a government or military hospital.
Separately, business of travel insurance is also being hit as foreign trips are being cancelled and events being rescheduled. “The impact on the business is more from a standpoint of significant reduction in policy volumes,” said Verma.
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