10 Health Insurance Industry Trends in India

10 New Health Insurance Trends in India

Check out the new trends in the health insurance industry in India:

1. New IRDAI Regulations

   The Insurance Regulatory and Development Authority of India (IRDAI) keeps issuing new regulations to keep the insurance industry focused on public interest rather than blindly making profits. The new regulations issued by the IRDAI in 2024 aim to make medical insurance more inclusive and increase its penetration in the country.

   Some of the new IRDAI regulations for insurers in the year 2024 are as follows:

   • To issue health insurance plans to people of all age groups by removing the previous entry age reference of offering plans of at least up to 65 years.
   • To reduce the maximum waiting period for pre-existing diseases (PED) and specific diseases to 3 years.
   • To offer customized health plans for specialized groups like senior citizens and remove indemnity-based policies.
   • To provide policies to people with severe health conditions.
   • To create a dedicated support channel for senior citizens.
   • To remove any sub-limits on AYUSH treatments.

   The IRDAI has also allowed policyholders to file claims with multiple insurers if they have a benefit-based policy.

2. Specialized Insurance

   Insurance companies in India have started offering several specialized products for different customers. For instance, most insurers offer health insurance cover for HIV patients, cancer patients, heart patients and diabetic patients. Besides, customized health plans for senior citizens, women, young adults, surrogate mothers, etc., are also available.

3. Cashless Everywhere

   One of the biggest health insurance trends recently has been the introduction of cashless everywhere facilities by all insurers in India. With this facility, policyholders can avail cashless treatment at any hospital of their choice across India, even if it is not in their insurer's network. This makes insurance more accessible for people, especially during medical emergencies.

   Policyholders only need to inform the insurer about their hospitalization, i.e. within 48 hours of an emergency admission and at least 48 hours prior to a planned hospitalization.

4. Big Data

   The introduction of Big Data in the medical insurance sector has enabled insurers to target their customers more precisely. Big Data technology allows insurers to gather data from traditional databases, social media, GPS systems and sensors and analyse it to understand the risk profile of a potential customer.

   Besides risk assessment, using Big Data aids insurers in underwriting, personalized marketing, product development, fraud detection, regulatory compliance, customer insights, operational efficiency, predictive analytics and claim settlement.

5. Cloud Technology

   While Cloud Technology has transformed many industries, the insurance sector is no exception. Through cloud computing, the health insurance industry has saved a huge amount of money by investing in better training programmes or insurance products. It helps to upgrade storage and RAM, manage equipment, deploy anti-virus, update software applications, etc. It also allows the industry to integrate risk management and assessment while protecting it against data breaches or theft.

6. Online Sales Channel

   Online sales of insurance policies have changed the perception of the industry in India. Insurance was once perceived as one of the most misselling products, courtesy of dishonest insurance agents. But, with the advent of online platforms, people can check the terms and conditions of a mediclaim policy before making the actual purchase, eliminating the involvement of agents.

   Moreover, online comparison portals, like Policybazaar.com, allow people to compare plans from different insurers, saving time, money and effort of the customer. Thus, online purchases make the whole health insurance buying process more transparent.

7. Blockchain

   Blockchain technology is famous for solving security-related data exchanges, including in the insurance sector, where customer security is paramount. Blockchain provides faster access to a big amount of data from customers. It helps in reducing administrative costs via automated verification of claims/payments from third parties. Moreover, insurers can easily view past claim transactions on Blockchain.

   Thus, Blockchain has enhanced the medical insurance sector by providing complete transparency, accountability and superior security, helping insurers save money and time and improve customer satisfaction.

8. Adoption of Global Strategies

   With so many joint ventures and collaborations with foreign insurers, the Indian insurance industry is inculcating global expertise and international strategies, leading to an overall increase in efficiency and effectiveness. The claim process has become faster and more streamlined, and the document submission has gone online. IRDAI currently allows up to 74% of foreign direct investment (FDI) in general and health insurers.

9. Increased Penetration

   The healthcare industry in India is evolving fast. There has been a continuous rise in the number of medical and paramedical professionals in the healthcare network, making health insurance more penetrable at ground levels. This is further bolstered by government-driven awareness programs at rural levels, more awareness among people for insurance and better healthcare infrastructure.

   Thus, the overall improvement in the medical insurance sector is increasing insurance penetration, which, in turn, is inspiring further improvement.

10. Integrated Approach

    The health insurance industry in India is driven by competitors, workforce, IRDAI, customers, and healthcare networks & professionals. The insurers are constantly expanding their network of hospitals, clinics, and speciality care centres while also offering value-added services with their plans, such as e-consultations, 24x7 doctor's helplines and regular health check-ups.

    Moreover, insurers have started offering health plans with annual health check-ups, automatic restoration of the sum insured, consumables cover, PED coverage from day 1, wellness discounts, etc.

The Road Ahead!

The Indian healthcare industry is growing rapidly, so the government is making efforts to ensure quality medical services to all. The insurance providers contribute by introducing innovative products with advanced features and promoting health insurance awareness.

Moreover, demographic factors, such as the young nsurable population, growing awareness of health insurance among the middle class, awareness of retirement planning, etc., aid in the subtle growth of the health insurance industry in India, making its future promising.