The country's declining air quality will probably cause general insurance providers to witness an increase in demand for health insurance in the upcoming months.
As a result of increased awareness following the epidemic, the health insurance market experienced significant expansion. The segment expanded by 24.4% to Rs 54,713.52 crore in the first half of the 2023–24 fiscal year from Rs 43,981.54 crore in H1FY23, propelling the expansion of the non-life insurance sector. One of the main contributing factors was the increase in group health insurance premium costs.
The health insurance sector saw tremendous growth in H1FY24 as a result of increased awareness following the pandemic, with industry premiums soaring 120% from Rs 24,864.01 crore in the first half of FY19–20.
In the health sector, the group health segment premium increased by approximately 27% in H1FY24, from Rs 23,316.04 crore to Rs 29,537.57 crore over the same period in the previous fiscal year. In contrast, over the same period, retail health premium increased by 18.39% to Rs 18,784.82 crore from Rs 15,867.31 crore.
"The deteriorating air quality index (AQI) will not only affect the lungs and result in respiratory disorders but also cause other long-term problems," states Siddharth Singhal, business head of health insurance at Policybazaar.com.Many of the clients we visit are worried about their health. They are purchasing health coverage."
The majority of India's major cities have severe, moderate, or poor air quality (AQI) values. Although the situation in Delhi-NCR is dire, air pollution is also getting worse in certain other major cities, including as Mumbai.
Health risks arise from the declining quality of the air, particularly for people who have respiratory conditions. It even results in hospitalization in certain instances. Demand will also be supported by a rise in health-related awareness brought on by a spike in claims throughout the winter.
