‘Sharp rise in Covid-19 claims has hit the insurance industry’: Stakeholders – The New Indian Express
NEW DELHI: Health insurance companies have received a total of 28 lakh Covid claims worth Rs 35,681 crore in the past two years.
In an interaction with TNIE, Prasun Sikdar, MD and CEO at ManipalCigna Health Insurance, said that Covid related insurance claims have almost doubled compared to the non-Covid claims, and the sharp rise in Covid claims has hit the insurers substantially.
However, he says that insurance firms have processed claims in a timely manner since the onset of the pandemic so that customers could access the quality healthcare they needed.
“At ManipalCigna, we have paid claims worth Rs 850 crore + in the last two years with 85% settlement ratio. For only Covid, this is 24,000 paid claims worth Rs 243 Crore, with the settlement ratio of 90%,” he says.
Sikdar says over the last couple of years, the Health insurance sector has emerged as the fastest growing non-life insurance segment.
“We believe that health sector will continue to grow in the times to come as this is driven by increased awareness and demand, rising affluence in India, and the higher prevalence of diseases,” says Sikdar when asked how the pandemic has changed the insurance industry.
He says the pandemic has also led to digital acceleration and adoption.
“Social distancing has now made customers adapt to online purchase and online service,” he added.
On whether the pandemic would lead to higher health insurance cost, Sikdar says that Covid-19 has brought about multitude of changes in the treatment protocols which in turn have also impacted the costs.
He, however, says that if these changes are going to be permanent, then these factors could also impact the premiums in the long run.
Higher health insurance cost
Covid-19 has brought about multitude of changes in the treatment protocols which in turn have also impacted the costs.
He, however, says that if these changes are going to be permanent, then these factors could also impact the premiums in the long run
