Insurance Trends During Covid-19: Health in high demand, Motor lags

By: |
Published: June 18, 2020 10:17 PM

People feel that insurance helped to ease their stress and provide financial support during the time of COVID-19 crisis and most of them said that their claims experience matched their expectations.

Coronavirus Outbreak, Novel Coronavirus COVID-19, Insurance Trends During Covid-19, Health Insurance, Life Insurance, Motor Insurance, Fire InsuranceDue to the health concerns, retail Health Insurance segment registered a strong yoy growth of 25 per cent.

The outbreak of highly contagious Novel Coronavirus COVID-19 has impacted consumer sentiment towards their financial situation, overall health and future insurance purchases, reveals a survey conducted by leading reinsurance provider Swiss Re Group.

Based on responses received from about 1000 participants across Mumbai and Bangalore, life insurance and health insurance have been considered as the most significant policies in India in the past three months, by nearly 39 per cent and 63 per cent respondents respectively, while at least 1 in 3 people have searched for new policies and about 1 in 4 have purchased a new policy during this period.

A huge majority (68 per cent) of the participants felt that insurance helped to ease their stress and provide financial support during the time of COVID-19 crisis and 78 per cent of them said that their claims experience matched their expectations.

With almost one third of consumers in India are feeling anxious about their financial future, many are ready to sacrifice home / motor insurance (28 per cent), while a quarter would cut life insurance premiums (25 per cent) to help ease the burden.

In fact, Motor Insurance witnessed 23 per cent yoy decline in growth in May 2020 leading to sharp decline in premiums.

Due to the health concerns, retail Health Insurance segment registered a strong yoy growth of 25 per cent, while the overall growth in the health business was moderate at 9 per cent yoy as muted 3 per cent yoy growth in group health dragged the overall growth.

Covid-19 has provided opportunity to showcase value-add benefits and bundled offers as the disease has driven greater levels of vigilance around attention to policy coverage details.

Despite concerns about the financial future, Fire Insurance premiums, however, grew 22 per cent yoy in May 2020, likely due to higher corporate renewals compared to retail businesses as underlying borrowers focus on cash conservation.

Do you know What is ? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1SBI General Insurance Arogya Sanjeevani: Check features, inclusions, premium calculator
2Cyber insurance still at a nascent stage in India
3Life Insurance: Why you need to have a term insurance cover