The Impact of the Covid-19 Pandemic on India's Health Insurance Industry

Background - The primary function of the insurance sector is to cover risks by pooling them. In exchange for a premium, the insurance industry covers unforeseen losses such as catastrophic disasters and pandemics. Unlike a cataclysmic disaster, the COVID-19 pandemic has revealed that global economic and financial activity are inextricably linked. Insurance claims and financial operations have experienced extreme growth in the life and non-life industries, which has put tremendous strain on the sector. Averting pandemic risk has failed miserably in the past. This study looks at the tools created in the aftermath of previous pandemics and how the insurance industry might incorporate creative solutions to help with post-pandemic resilience. Purpose - To analyze the changes in India's health insurance sector by comparing the pre-and post-pandemic data from 2015 to 2020. Methodology - This study is descriptive and relies on secondary data from the internet. The purpose of this research was to have a better understanding of India's existing health insurance scenario. The majority of the data was obtained through working papers, journals, articles, the Insurance Regularity and Development Authority (IRDA), journals articles on the matter, publications, and annual reports from health insurers, all available on the company's website. Results - According to the IRDA Annual Reports for the fiscal year 2019-20, General and Health Insurance companies collected 50,758 crores in Health Insurance premiums representing a 13% increase over the previous year. During 2019-20, the four public sector general insurers maintained a larger market share with 49 percent of the total market. In 2019-20, General and Health Insurance firms covered 49.87 crore people under 1.79 crore health insurance policies. The Incurred Claims Ratio (ICR) of health business (excluding Personal Accident and Travel Insurance Business) improved from 91% in 2018-19 to 88% in 2019-20. There was also an improvement in ICR in group businesses about ICR for Group businesses, from 105% in 2018-19 to 99% in 2019-20. Conclusion - Health insurance may be a game-changer for the general population, enabling them to access world-class medical care anywhere in the country up to the sum assured in the policy document without fear of losing their savings, resulting in financial and mental incapacity.