Policybazaar.com sells 400,000 health policies in April-December 2020

Covid-19 pandemic and increased awareness about health plans, along with factors such as flexible payment options and availability of higher sums insured created a surge in demand

Online aggregator Policybazaar.com has sold 400,000 health insurance policies for an aggregate sum assured of Rs 7 trillion, insuring one million lives in April–December of 2020.

The Covid-19 pandemic and the increased awareness about health insurance, along with factors such as flexible payment options and availability of higher sums insured contributed to the surge in demand for such products.

The onset of the pandemic made people realise the importance of getting themselves covered and this led to a huge uptick in inquiries for health products across the spectrum. During the months of April–December, Policybazaar saw over 10 million visitors, of which 65 per cent were less than 40 years old, 25 per cent were in the 40-60 age group, and 10 per cent were above 60.

 

Interestingly, the pandemic has also had young people mostly opting for higher sum insured products. Around 40 per cent of customers are now buying such plans on Policybazaar, the company said in a statement. And, affordability is one of the reasons why people are going for such high sum insured policies.

“The ability for customers to pay for their health insurance in a flexible manner has also contributed to this growth. Data reveals 20 per cent of customers preferred paying for multi-year policies in one go, which helps them get a discount”, the company added.

Furthermore, it was seen that customers with pre-existing ailments also bought health insurance policies during the pandemic. According data compiled by the company, the share of policies bought by those with pre-existing conditions was 30 per cent, with the most common illnesses being diabetes 40 per cent and hypertension 25 per cent.

Sarbvir Singh, CEO, Policybazaar.com said, “The regulator, IRDA, has taken very timely actions this year, in ensuring that covid is covered by all policies, digitization of processes, and introduction of standard policies. These actions have helped increase transparency and trust in Health insurance, which will go a long way in increasing demand further”.