Category: Banking & Finance

Health insurance purchases have risen by about 50 per cent during the ongoing Covid-19 pandemic than previously, especially amongst younger people, according to a recent survey by ICICI Lombard General Insurance.

“The prime motivation to buy health insurance is to cover the expenses during an emergency. Covid-19 and the fear of job loss have motivated respondents to buy health insurance in the last six months across cities,” revealed the survey titled Evolution of Health Insurance – A Covid-19 Perspective and #RestartRight.

Recent industry data has also shown a sharp rise in the demand for health insurance with sales between April and November registering a near 13 per cent growth.

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While 60 per cent of the respondents had purchased health cover more than a year back, as many as 27 per cent had bought it in the last six months to one year, and 14 per cent had bought it in the last six months.

It also found that demand has increased significantly amongst the younger population due to concerns over the pandemic while for the middle age group, tax benefit is also one of the major motivations.

Tax benefit was the key focus for 51 per cent of the respondents in the age group of 31 to 35 years and 44 per cent of those surveyed between 36 and 40 years. In contrast, Covid-19 was the prime focus for 30 per cent of those purchasing health insurance in the age group of 25 to 30 years.

A total of 1,922 interviews were conducted for the survey, which took place between October 30, 2020 and November 10, 2020. This included 1,548 owners of health insurance policies and 374 persons who did not have health cover.

Significantly, it also found that persons who didn’t have a health cover resumed fewer activities post relaxation of the lockdown compared to insured persons.

While 78 per cent of the overall respondents had resumed grocery shopping, in other categories of activities like going to the office, dining out and consultation with a doctor, people with health cover were more active.

The survey also found that there has not been much change in the type of policy and preference behaviour post the pandemic, with 54 per cent of the respondents purchasing individual policies and 46 per cent buying family floaters.

As many as 74 per cent of the respondents who had purchased health insurance wanted to enhance the sum assured or coverage. The average health coverage is ₹5 lakh, which is expected to increase to an average of ₹8.9 lakh.

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Following the pandemic, customers across cities have become more independent and have started purchasing health insurance through websites and mobile apps.