 "Insurers see adverse claim ratio on Covid-specific health products")
Covid-specific health products, introduced last year by many insurers and subsequently by the insurance regulator via two standard policies, have been a hit among consumers but insurers are having a hard time dealing with claims.
As of March 15, 13.3 million lives have been covered under specific products for a sum assured of Rs 13.29 trillion, shows the data compiled by the insurance regulator that is not publicly available.
The regulator’s two Covid standard products — Corona Kavach and Corona Rakshak — have covered more than 4.7 million lives.
Earlier this week, looking at the resurgence of Covid-19 infections, the insurance regulator allowed general and health insurers to offer and renew Covid-specific policies till the end of September. Earlier, these were allowed to offer such policies till March 31, 2021.
Bhabatosh Mishra, director, underwriting, products & claims, Max Bupa Health Insurance, said, “By and large these products have adverse claim ratios as premiums are lower. We saw that people bought these products when infection numbers were high but in tandem with the falling infections, the number of people buying such products fell significantly. Now, there is again a surge in demand as cases have started to rise. Covid has had an adverse impact on claims ratio of the other products, too, and if this continues not just the Covid-specific products but other products may also need a price correction.”
While the insurers are expecting a good uptake for such products going ahead, they are worried about the not-so-favourable claims experience. The selling point of these products is they are way cheaper than the comprehensive health products, provide coverage only against Covid-19, and are for shorter tenures.
As of March 15, 13.3 million lives have been covered under specific products for a sum assured of Rs 13.29 trillion, shows the data compiled by the insurance regulator that is not publicly available.
The regulator’s two Covid standard products — Corona Kavach and Corona Rakshak — have covered more than 4.7 million lives.
Earlier this week, looking at the resurgence of Covid-19 infections, the insurance regulator allowed general and health insurers to offer and renew Covid-specific policies till the end of September. Earlier, these were allowed to offer such policies till March 31, 2021.
Bhabatosh Mishra, director, underwriting, products & claims, Max Bupa Health Insurance, said, “By and large these products have adverse claim ratios as premiums are lower. We saw that people bought these products when infection numbers were high but in tandem with the falling infections, the number of people buying such products fell significantly. Now, there is again a surge in demand as cases have started to rise. Covid has had an adverse impact on claims ratio of the other products, too, and if this continues not just the Covid-specific products but other products may also need a price correction.”
While the insurers are expecting a good uptake for such products going ahead, they are worried about the not-so-favourable claims experience. The selling point of these products is they are way cheaper than the comprehensive health products, provide coverage only against Covid-19, and are for shorter tenures.
