Health insurance companies in India are becoming to be one of the largest and fastest growing verticals in the insurance industry with HDFC ERGO’s Health Suraksha being amongst the top. For simplification purposes, all the health insurance companies in India are categorized under general insurance. In spite of this large growth in the customer base, the health insurance companies face a big challenge due to the rising medical expenses and the subsequent high losses faced by them.
Health Insurance policies – as perceived in India:
A study conducted to know the view of Indians on health insurance as a product showed that the way Indians perceived the health insurance policies was highly dissatisfying. Most Indians see health policies as a way to avoid taxes. Only a few percentage of the population looks at health policies an instrument to shield an important asset i.e. Health. This is usually seen in the developing economies, where people tend to put wealth first ahead of their (their family’s) health. If viewed at a broader scale, very few families in India actually have a backup plan to meet their treatment and medication costs. It is also observed that the health risks are differently observed in India than those in the west. Right planning for health issues is still to become a priority task.
Insurance Companies in their Initial Phase:
With a penetration of barely 4-5%, the health insurance companies seem to have a large opportunity in the insurance market. More than 10 products were offered by HDFC ERGO’s Health Suraksha alone to cater to different demographics of Indian society. HDFC ERGO also made attempts to pull the customers online, by allowing them to purchase the health insurance products online. The level of health insurance penetration in the world was much higher than that of India. This had resulted in creation of networks of distribution channels in India like – the insurance agents, the brokers, bancassurance, Internet and direct mailing. Banks as well as the financial institutions in India also saw a huge opportunity in promoting various types of health insurance products. Insurance brokers contributed significantly in expanding the reach of the insurance companies, and their part is crucial when a claim was made.
What is the need of a Health Insurance?
Health treatments costs, hospitalization expenses and medication have become costly in recent times. More often, hospital bills prove to be more painful the disease itself. An ideal solution to this is safeguarding your savings through a health insurance. Although HDFC ERGO’s Health Suraksha offers various products with different Sum Insured amounts, it is important to note that a health policy only reimburses an amount not more than this pre-defined limit or the Sum Insured. Usually, more than 70 percent of total spends on hospitalization and medication bills come from the individual’s savings. A health insurance with basic features and low sum insured will thus relieve you only to some extent. A notable proportion of the population have refrained themselves from the treatment all together. Hence it is necessary that the sum insured on the health insurance policy is increased. Modern day lifestyle is prone to many diseases which further emphasizes the need for a health insurance policy.
Medical insurance policy not only reimburses the costs incurred for the period of hospitalization but also the pre and post hospitalization period e.g. expenses for carrying out medical tests and purchasing medicines. The medical insurance cover will be limited to the predefined amount i.e. the sum insured.
Emergence as the 2nd largest segment:
Health insurance has become the second largest segment after motor insurance as more and more individuals realize the importance of securing their health. It is also becoming an important stream of business for many insurance companies offering products in health insurance.
Apart from the rising awareness for health insurance among the people, the Central and State governments were also instrumental in the growing this segment by taking up large-scale insurance programs like – Rajiv Arogyasri Scheme and the Kalaignar Scheme in Andhra Pradesh and Tamil Nadu, respectively.
Source: http://goo.gl/rgkuNg
Health Insurance policies – as perceived in India:
A study conducted to know the view of Indians on health insurance as a product showed that the way Indians perceived the health insurance policies was highly dissatisfying. Most Indians see health policies as a way to avoid taxes. Only a few percentage of the population looks at health policies an instrument to shield an important asset i.e. Health. This is usually seen in the developing economies, where people tend to put wealth first ahead of their (their family’s) health. If viewed at a broader scale, very few families in India actually have a backup plan to meet their treatment and medication costs. It is also observed that the health risks are differently observed in India than those in the west. Right planning for health issues is still to become a priority task.
Insurance Companies in their Initial Phase:
With a penetration of barely 4-5%, the health insurance companies seem to have a large opportunity in the insurance market. More than 10 products were offered by HDFC ERGO’s Health Suraksha alone to cater to different demographics of Indian society. HDFC ERGO also made attempts to pull the customers online, by allowing them to purchase the health insurance products online. The level of health insurance penetration in the world was much higher than that of India. This had resulted in creation of networks of distribution channels in India like – the insurance agents, the brokers, bancassurance, Internet and direct mailing. Banks as well as the financial institutions in India also saw a huge opportunity in promoting various types of health insurance products. Insurance brokers contributed significantly in expanding the reach of the insurance companies, and their part is crucial when a claim was made.
What is the need of a Health Insurance?
Health treatments costs, hospitalization expenses and medication have become costly in recent times. More often, hospital bills prove to be more painful the disease itself. An ideal solution to this is safeguarding your savings through a health insurance. Although HDFC ERGO’s Health Suraksha offers various products with different Sum Insured amounts, it is important to note that a health policy only reimburses an amount not more than this pre-defined limit or the Sum Insured. Usually, more than 70 percent of total spends on hospitalization and medication bills come from the individual’s savings. A health insurance with basic features and low sum insured will thus relieve you only to some extent. A notable proportion of the population have refrained themselves from the treatment all together. Hence it is necessary that the sum insured on the health insurance policy is increased. Modern day lifestyle is prone to many diseases which further emphasizes the need for a health insurance policy.
Medical insurance policy not only reimburses the costs incurred for the period of hospitalization but also the pre and post hospitalization period e.g. expenses for carrying out medical tests and purchasing medicines. The medical insurance cover will be limited to the predefined amount i.e. the sum insured.
Emergence as the 2nd largest segment:
Health insurance has become the second largest segment after motor insurance as more and more individuals realize the importance of securing their health. It is also becoming an important stream of business for many insurance companies offering products in health insurance.
Apart from the rising awareness for health insurance among the people, the Central and State governments were also instrumental in the growing this segment by taking up large-scale insurance programs like – Rajiv Arogyasri Scheme and the Kalaignar Scheme in Andhra Pradesh and Tamil Nadu, respectively.
Source: http://goo.gl/rgkuNg
