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HYDERABAD: General insurance companies have sold nearly 15 lakh standard Covid-19 health covers, including both the indemnity-based Corona Kavach and benefit-based Corona Rakshak — in the last one month, Insurance Regulatory and Development Authority of India (IRDAI) chairman Subhash C Khuntia said on Thursday.
While addressing participants at the virtual 21st Ficci-Fincon 2020 on the theme ‘India Insurance in the Post-Covid world’, he said that the high demand for the standard Covid-19 health cover shows that there is a need for such products in the market and thus insurance companies must, in the coming days, be able to assess the evolving needs of people and come up with innovative products to cater to those specific requirements.
Khuntia said that along with innovative products, insurance companies must also come up with innovative processes in areas such as customer on-boarding and engagement, among others, to improve user experience and cope up with changing times.
On the standard health policy Arogya Sanjeevani, he said that many insurance players are of the view that the policy is competing with their other health policies. He said it is not right for insurers to think so because at the end of the day, insurance companies are generating business by selling both, Arogya Sanjeevani and their company policies.
Underlining the importance of standard products, he pointed out that such products create trust in the minds of customers as the claim settlement process is smooth and there is no ambiguity in what is covered and what is not.
Speaking about the overall sector, he said in 2019-20, the industry was able to mop up a premium of Rs 7.58 lakh crore with a growth rate of 12% Y-o-Y.
“Had it not been for the disruption caused by Covid-19 in the last week of March, the growth rate could have been higher,” he said, adding that the insurance industry is recovering well from the Covid blow with general insurance already reporting a growth in business in July.
He also urged the industry to look at micro insurance for improving insurance penetration and catering to the unique requirements of the population, especially in the tier 2 and 3 and rural areas.
He also said that in the Covid times, the insurance industry must build operational resilience and focus on cyber security and have in place business continuity plans.
While addressing participants at the virtual 21st Ficci-Fincon 2020 on the theme ‘India Insurance in the Post-Covid world’, he said that the high demand for the standard Covid-19 health cover shows that there is a need for such products in the market and thus insurance companies must, in the coming days, be able to assess the evolving needs of people and come up with innovative products to cater to those specific requirements.
Khuntia said that along with innovative products, insurance companies must also come up with innovative processes in areas such as customer on-boarding and engagement, among others, to improve user experience and cope up with changing times.
On the standard health policy Arogya Sanjeevani, he said that many insurance players are of the view that the policy is competing with their other health policies. He said it is not right for insurers to think so because at the end of the day, insurance companies are generating business by selling both, Arogya Sanjeevani and their company policies.
Underlining the importance of standard products, he pointed out that such products create trust in the minds of customers as the claim settlement process is smooth and there is no ambiguity in what is covered and what is not.
Speaking about the overall sector, he said in 2019-20, the industry was able to mop up a premium of Rs 7.58 lakh crore with a growth rate of 12% Y-o-Y.
“Had it not been for the disruption caused by Covid-19 in the last week of March, the growth rate could have been higher,” he said, adding that the insurance industry is recovering well from the Covid blow with general insurance already reporting a growth in business in July.
He also urged the industry to look at micro insurance for improving insurance penetration and catering to the unique requirements of the population, especially in the tier 2 and 3 and rural areas.
He also said that in the Covid times, the insurance industry must build operational resilience and focus on cyber security and have in place business continuity plans.
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