INTRODUCTION
The year 2020 will be remembered as a defining moment in history. Half a year has passed, and the epidemic continues to loom. We've all progressed from being terrified of the unknown to learning to live with it now. As we all say nowadays, this is the new normal. On the surface, it may appear that things are gradually returning to normalcy, but the reality on the ground is quite different. The coronavirus has resulted in not just the spread of an infectious virus, but also financial instability and a global economic slump. This clearly implies that you must not only protect yourself from the virus and other illnesses but also preserve your financial security.
Health insurance is a type of insurance that pays for medical costs incurred as a result of an illness. These costs could include hospitalisation fees, medicine costs, or doctor consultation fees. Nobody expects to get sick or harmed, but serious sickness can strike at any time. The cost of treating the condition might put a significant strain on any funds you've built up over time. This means you may have to choose between providing your child with the best education possible and defaulting on your mortgage payments. The expense of medical treatment is steadily increasing today. Recessions haven't had much of an impact on health care. People get sick in both good and bad times, thus medical care demand is rather consistent across the financial cycle. Furthermore, health insurance lowers people's out-of-pocket payments for care, allowing many sick people—at least those with health insurance—to continue to see doctors.
COVID IMPACT
COVID-19 insurance policies were released by a number of insurance providers in March 2020. A coronavirus health insurance policy is a specialised health insurance plan that covers the costs of hospitalisation and treatment for the Covid-19 Virus. In India, you can choose from a variety of Covid-19 health insurances online, such as the corona rakshak cover, corona kavach policy, or, better yet, inclusive health insurance that covers the coronavirus as well as other illnesses, diseases, and healthcare benefits.
Following the pandemic, people have become more concerned and informed about their health, and inquiries regarding health insurance coverage have grown by 30–40%. The pandemic also presents a chance for insurance companies to originate and meet the changing needs of a better-informed public. Other businesses may follow suit and launch similar items. These products are often short-term and have pre-set benefits that cover a set sum over and above the hospitalisation programmes. With improved awareness of the situation, chronic diseases, and co-morbidities, the value of policies will increase, and claims will tend to decrease. Many employers who offer employee health insurance are making separate investments in these activities. Insurance companies can take advantage of this opportunity to improve client loyalty as well as portfolio and retention ratios. There is also a clear prospect for insurance companies to collaborate with their corporate customers to supplement employee benefits with healthcare activities in order to improve the health quotient and better weather the COVID-19 situation.
The government has taken steps to lower bond interest and repo rates, posing challenges for insurers in terms of maintaining higher reserves (which are higher for life insurers than for health insurers), liquidity risk, credit risk, and so on. In light of these difficulties, the regulator may be forced to give some temporary relief from the reserving requirement for insurers who were on the verge of solvency
CONSUMER WANT
The COVID-19 epidemic caused a significant shift in customer perceptions of life insurance as well as insurance providers' delivery methods. It altered the way Indian businesses, especially the insurance industry, function. Even for customers, the pandemic served as a reminder of the significance of life insurance in difficult times.
Consumers are looking for improved life insurance policies, as well as customised solutions, in the aftermath of the epidemic. Some of the key expectations from a post-pandemic insurance market are payment flexibility, innovative products, online forms of transactions (contactless purchase and renewal, and extra benefits of COVID-19 insurance in existing plans).
With a growing emphasis on social networking and contactless transactions, more and more people are purchasing and renewing life insurance online. As a result, insurance companies have begun to offer digitally integrated omnichannel systems and enhanced online capabilities.
People value the protection and fallback afforded by life insurance products in difficult times as a result of the pandemic's financial impact. People are gravitating for pure protection plans like term life insurance, which can be related to the psychological impact of the COVID-19 pandemic. As more people look to obtain life insurance, term policies have grown in popularity due to their price and simplicity.
CONCLUSION
As a result, the COVID-19 pandemic poses a number of challenges for the health insurance industry while also providing an opportunity. Health insurance is expected to mitigate the influence of the pandemic. Insurance companies may be able to support it further through product development activities and ensuring their reach is extensive, despite the fact that it is extremely relevant to society. A well-insured person is always better prepared to deal with financial storms. Protection products are becoming an essential of financial planning, particularly in light of the potential for a deadly pandemic.
REFERENCES
https://www.godigit.com/health-insurance/coronavirus-health-insurance