Health insurance sales grow 20 per cent on Covid-19 fears

G Naga Sridhar Hyderabad | Updated on April 09, 2020 Published on April 09, 2020

The spurt in health insurance business in March could also have come from the tax-savings season   -

Spurt in health insurance business in the last one month, besides huge upswing in inquiries

The growing concern over the coronavirus (Covid-19) pandemic has been driving people increasingly towards taking health insurance.

According to initial data available with some insurers, there has been a spurt in health insurance business in the last one month, besides huge upswing in inquiries about cover.

“We have seen an increase of 15-20 per cent in our health numbers in the last one month. We also see good growth in the health segment going forward,” Pankaj Arora, MD & CEO, Raheja QBE General Insurance, told BusinessLine.

According to Amit Chhabra, Head - Health Insurance,, growth in the health insurance business in the last 25 days has been much higher at about 30 per cent.

Apart from the fear of Covid-19, the spurt in health insurance business in March could also have come from the tax-savings season (last month of every financial year), Gurdeep Singh Batra, Head, Retail Underwriting, Bajaj Allianz General Insurance, said.


The digital and online offerings by insurers are coming in handy for those who wish to buy insurance during the lockdown period.

As more and more private hospitals and labs are being roped in for the fight against coronavirus, many in the age group of 25 to 55 are now looking for health cover, say insurers.

Going forward, Arogya Sanjeevini, thanks to its simplicity and affordability, is also expected to drive growth. While “it is very early to say (anything) about the response, as insurers have just launched their products, or are in the process of doing so,” as observed by Chhabra, insurers do see a great potential in this standard health cover policy.

According to Batra, Arogya Sanjeevini will play a crucial role in encouraging people to opt for health insurance. The company launched the product early this week.

The health business grew by 26 per cent for private insurers and 9 per cent for public sector players. The overall health insurance business grew by 17 per cent during April-February 2019-20 (first 11 months of the last financial year) compared to the same period last year, as per Insurance Regulatory and Development Authority of India (IRDAI) data.

The growth could have been more for the full year except for the lockdown which prevented on-field sales of insurance during most part of the last month.

During FY2018-19, general and health insurance companies collected ₹44,873 crore as health insurance premium, registering a growth of 21.2 per cent over the previous year.

For the last four years, it has been growing at more than 20 per cent per annum.

Published on April 09, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.