Insurance companies: the pandemic offers insurers a long-term opportunity

Before the pandemic, the gross health insurance premium fell from Rs 9,503 crore in Q1FY19 to Rs 12,814 crore in Q4FY19. In March 2020, Covid-19 spread across the world.

Synopsis

The insurance market was underpenetrated due to a lack of knowledge and financial literacy, as well as expensive premiums and a high mortality gap. India’s insurance penetration stood at 4.2%, with life insurance penetration at 3.2% and non-life insurance penetration at 1% in 2020-21.

The world was restarting during Covid-19, but health insurers were working around the clock to settle claims. The profitability of health insurers was affected by the increase in claims. According to the Insurance Regulatory and Development Authority of India (IRDAI) annual report, in 2020-2021, general insurers and health insurers settled 1.40 crore of claims and paid Rs 43,355 crore for insurance claims sickness. The average amount paid per claim

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Kristan F. Talley