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Health Insurance - Third Covid Wave To Drive Premium Growth If It Manifests, To Impact Claims: Motilal Oswal

Health Insurance - Third Covid Wave To Drive Premium Growth If It Manifests, To Impact Claims: Motilal Oswal

A medical assistant  wears a stethoscope. (Photographer: Andrew Harrer/Bloomberg)
A medical assistant wears a stethoscope. (Photographer: Andrew Harrer/Bloomberg)

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Motilal Oswal Report

With a new Covid-19 variant emerging in many countries, there are expectations about a third wave in India as well. In this report, we highlight the impact of the first two waves on premium growth, claims frequency, and claims severity for health insurers in India.

  • Health Insurance in India is highly underpenetrated, with less than 4% of the population having a retail health cover. The pandemic helped increase awareness of buying a medical cover, which translated in a 28%/18% YoY growth in retail health insurance in FY21/H1 FY22.

  • In April 2020 (after the Covid-induced nationwide lockdown), growth in health insurance was muted at 5.7%. While demand was strong during this phase, the challenge in distribution, owing to the lockdown and limited preparedness of insurers to conduct business online at such a large scale, restricted growth. During the second Covid wave, growth was strong (up 18% YoY) in seven months-FY22.

Click on the attachment to read the full report:

Motilal Oswal Health Insuarnace Sector Update.pdf

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