The pandemic has increased awareness about the need for medical insurance. According to a survey by Max Bupa, before the Covid-19 outbreak only 10 per cent of Indians were interested in buying health cover against new-age diseases. That number has now jumped to 71 per cent. V Jagannathan, chairman & CEO of Star Health, tells T E Narasimhan how the pandemic is changing the face of health insurance. Edited excerpts:
How has the pandemic impacted the health insurance sector?
There are four sections of society: the upper class; the upper middle-income group; the middle-income group; and people who live below the poverty line (BPL).
The super-rich are not concerned about hospital expenses. And those in the BPL segment are covered under one government scheme or the other. The middle-income and upper middle-income groups, for whom health insurance wasn’t a top priority, are now responding positively towards buying medical insurance as they have started to realise its importance.
Star has sold more than 225,000 policies related to Covid, which, by any standard, is a good number. It shows the interest of the public and that the pandemic has got them to invest in health insurance. Even in all other insurance policies, I would say there is a noticeable upward trend in sales.
Do you think the trend would continue once Covid is over?
At least 50 per cent of the population that has bought health policies covering coronavirus will definitely continue to take some form of health insurance or the other.
How can you increase the reach of health insurance in a country like India?
First, in India, a considerable population still believes in fate. An insurance firm has to change that mindset, and explain whether the diseases is curable or preventable and how hospital expenses can sky rocketed, making health insurance essential.
Second, a thought process has to evolve that health is a service to humanity and that everyone should work together towards it. If this is achieved, the premium rates of health policies will go southwards.
Third, India has a considerable population living in rural areas. This population has to be educated and tapped.
Can the government or the regulator put some checks in place to bring down the insurance cost?
The regulator is working in this direction, but results are yet to be seen.
How is the future looking for the health insurance sector, and for Star Health?
I am very optimistic about the health sector, as also for Star. We have enabled all our resources to interact with all the stakeholders and keep the momentum going.
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