What Impact Has COVID-19 Had On The Medical Industry?
Updated On Jun 08, 2022
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COVID-19 has impacted several industries in India, including the health insurance industry. Over the last few years, the health insurance business has seen some beneficial improvements as well as some obstacles. These adjustments were made by insurance companies in order to adapt to the new COVID-19 pandemic regulations and continue to provide services to consumers without causing any inconvenience. Insurers have integrated COVID-19 specialized health insurance coverage in their standard health insurance plans for policyholders. The health insurance industry has gone completely digital, with health insurance plans purchased and renewed on the insurer's official website. People have realized the need of having a financial backup for medical crises, hence the sale of health insurance coverage has expanded considerably in recent years. Even in times of economic hardship for businesses, the health insurance industry has persevered and adapted to meet the needs of clients and global trends.
COVID-19's Impact on the Health Insurance Industry
The following are some of the important elements that show how the coronavirus epidemic has affected India's health insurance sector:
- Payments for Claims
IRDAI has required and advised health insurers to incorporate COVID-19 coverage in all policyholders' normal health insurance policies. Because the treatment of coronavirus is not covered by active goods, these claims by customers are extra burdens on insurers' books, especially when they are not treated at government facilities. The number of claims for other diseases has also grown, since persons with severe conditions such as diabetes, respiratory disorders, and other chronic illnesses are more likely to be diagnosed with coronavirus. Furthermore, because the grace period for renewal has been extended to 30 days, health insurance carriers may face major financial issues.
- Products Development
Health insurance companies have made certain advances and modifications in their health insurance products to meet the expanding and unique demands of policyholders. Some insurers have created distinct extra benefits, while others have incorporated these protections into their standard health insurance policies. These developments were made to meet the expectations of customers, and numerous characteristics such as a quick waiting time, broad coverage, and protective gear charges, among others, have been incorporated in all of the basic health insurance plans.
- Increased Sales
People have realized the need of having financial backups in case of medical crises, and as a result, an increasing number of people are purchasing health insurance coverage for themselves and their loved ones. Customers have a wide range of alternatives in the insurance sector from which to pick.
- Requirements for Reserves
The Indian government has decreased repo rates and bond interest rates in response to the global pandemic's economic crisis, which might lead to issues in managing reserves, credit risks, and liquidity hazards, among other things.
- Installment Payments for Premiums
Following the COVID-19 outbreak, health insurance companies began allowing people to pay their premiums in installments. This feature aids policyholders in avoiding financial fatigue by making health insurance policies more reasonable and covering a plan with a large sum promised. Payments can be made quarterly, half-yearly, monthly, or annually.
- The Industry's Digitalization
Customers' KYC may now be completed online without the need for physical signatures or in-office paperwork, according to health insurance carriers. For customers, this adjustment has made things easier and more accessible.
The global epidemic has caused several changes in various industries across the country, including the health insurance industry. The health insurance industry has improved in many ways, but it has also experienced significant problems, and it continues to serve its customers with modesty and honesty.