How will Health Insurance sector shape after COVID-19?
With the growing nervousness and ambiguities in the economy due to the menacing COVID-19 pandemic, there have been adverse effects on various industries and businesses. This COVID-19 pandemic has made a huge impact on the health insurance sector like other industries. The health insurance market has been refurbished utterly, as this COVID-19 pandemic has made people realize the importance of purchasing various health insurance plans under any emergency scenario. Over the past one and half years, the health insurance market has experienced a huge surge because people are purchasing various health insurance policies along with covid insurance to strengthen coverage and financial security.
To satisfy the customers’ evolving demands during this pandemic, many health insurance companies in India have changed or revamped their health insurance policies. As a result, IRDAI has made it mandatory for all leading insurance providers to incorporate COVID-19 insurance plans into India’s best health insurance policies.
During this pandemic, many customers are looking for corona health insurance plans to combat medical expenses coming from this deadly virus. Thus, all eminent insurers are embracing policyholders with various facilities, including digital premium payment options, online purchasing, and renewal of coronavirus insurance coverage, critical illness coverages, and so on. These days, people are purchasing comprehensive health insurance plans that are affordable and offer great coverage for their families. To uplift their sales, the insurers are coming up with unique plans (health insurance for covid or pandemic health insurance) and exclusive features to satisfy the needs of the policyholders.
The promising future for the health insurance sector after COVID-19
This deadly COVID-19 pandemic has doomed the Indian economy strikingly and has damaged every industry and business, including the health insurance sector. Many industries have restructured their operations and adopted the new norms to sustain during this COVID-19 pandemic. These days, the health insurance industry also prioritizes various health insurance policies, including COVID-19 insurance, and offers immense support to their policyholders. The leading Indian insurance companies have launched different lucrative plans like COVID-19 specific insurance plans, critical illness plans, etc., for the betterment of their customers. Companies are inspiring their customers to purchase, renew, and compare different health insurance policies without any hassle by employing various digital platforms. So, the health insurance future is bright and scintillating.
Some productive changes in the insurance sector due to COVID-19
Here, we are going to mention some notable positive changes in the health insurance industry. Insurance companies have introduced these changes to serve their customers better during this COVID-19 pandemic.
- There is an unparalleled demand for health insurance plans during this COVID-19 pandemic. This is advantageous for both companies and their customers. To gain the attention of the customers, insurers are embracing them with various health insurance plans. Health insurance plans that come with unique features and benefits are high in demand among customers.
- Because of the COVID-19 pandemic, the Indian health insurance sector has been migrating towards digitalization. Companies are wholeheartedly adopting digital technologies and are motivating their customers to accomplish purchasing, renewing, and comparing health insurance covers online. By logging in to the insurer’s website, customers can purchase and renew their existing policies within a few clicks. Now, there is no need for manual work and documentation. Even by using secured transaction gateways, customers can make payments for policies without any hassle.
4 Major challenges faced by Insurance Sector during COVID 19 Pandemic
The COVID-19 pandemic has bought an array of challenges to insurance companies to maintain their normal operations. Let’s consider some of the challenges that insurance companies have faced due to this COVID-19 pandemic.
- The cost of treatment is not the same for all: Since the COVID-19 is a new and thriving disease, several medical studies are going on to find the exact cure and treatment methods for this disease. The cost of treatment is not the same for all. Depending on an individual’s immunity, this virus affects different people. Thus, the claim amount for corona health insurance is not accurate, and it’s tough to predict the amount in advance.
- Intricate claim settlement process: The Indian insurance companies face some unique claim experiences that tarnish their quality of services, especially during the claim settlement process. The difficulties in the claim settlement process are affecting the policyholders. Based on the impact of the disease on a patient, the cost varies. Sometimes, the availability of the medications has made the entire claim settlement process more intricate and volatile. Companies are making the claim settlement process facile by omitting specific requirements and shortening the paperwork.
- Digitized is the key: Insurance companies that have adopted digital technologies for underwriting claims and operations are certainly in a better position than their contenders. On the other hand, companies lacking these capabilities or who still depend on cruder technologies are struggling the most in this pandemic situation. As a result, these companies can even lose customers to more digitally-driven contenders. Moreover, people who have scant knowledge of digital services or don’t have access to these services may not enjoy all the benefits of health insurance plans. Thus, this sector should find innovative ways by which it can target and reach a wider audience and offer them financial assistance under any medical emergencies.
- Social responsibility is on the rise: These days, insurance companies are coming up with new ideas and plans to support their policyholders. For example, many companies offer more relaxation in grace periods for premiums, waivers for some parts of their claims processing to accelerate payments, omitting the requirements for various documents, etc. Most reputed insurance companies worldwide are adopting these new trends to cope with the effect of the COVID-19 pandemic. All these trends were not imagined before COVID-19.
To make a bright future, the insurance sector should keep focusing more on the digital journey. The insurance companies should develop virtual services and intriguing health insurance plans that offer the highest coverages at a reasonable price.