Money & Banking

Covid-19: Spike in health insurance claims expected to normalise by September

Our Bureau. Kolkata | Updated on July 19, 2020

The general insurance industry is likely to witness a spike in health insurance claims primarily coming from Covid-19 related illnesses. However, the increase in claims arising out of the Covid-19 virus would get balanced by the non-Covid claims as more and more people are avoiding hospitalisation.

Mahesh Balasubramanian, MD and CEO, Kotak General Insurance, said that there has been a general spurt in claims with the Covid-19 cases doubling rapidly. However, the situation is expected to normalise by September and claims would come down to pre-Covid levels.

“People are staying away from hospitals for all kinds of optional surgeries so claims are lower there so the increase in Covid claims is being balanced by the non-Covid claims. I expect the situation normalising by August-September and we should be back to pre-Covid levels in terms of claims,” said Balasubramanian.

Balasubramanian was among one of the panellists speaking at a webinar on General Insurance in a Changed Paradigm: Reassessing Strategies for the New Normal organised by the Bengal Chamber of Commerce & Industry on Saturday.

 

Digital architecture

The current crisis has pushed insurance companies to depend heavily on their digital architecture who are working on improving the reach of digital channels thereby leading to cost reduction and increased efficiency.

Mayank Bathwal, CEO, Aditya Birla Health Insurance Co Ltd, said that it is a great time to leverage upon the awareness created by the pandemic and focus on creating more customer engagement and product relevance.

 

“We are currently at a point where the awareness is very high (among consumers) and we would like to leverage that and introduce products meant for digital platform,” he said. The industry has also been witnessing a structural change in the volume, nature and composition of insurance demand and claims.

“Organisational nimbleness and agility is important to be able to stay ahead of the curve,” said Bhargav Dasgupta, MD and CEO, ICICI Lombard General Insurance.

Published on July 19, 2020

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