Weekly Insurance Round-up Tuesday, December 27, 2021
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We're back, with the next edition of Beshak's Weekly News Round-up - an analysis of all Insurance News & Updates, straight from our research desk! Don't forget to share your feedback with us, and give us a thumbs up if you find this helpful! 👍🏻
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✴️ Standalone Health Insurers’ incurred claims grow at a slower pace in Covid-hit FY21 💸
✴️ Health Insurance Gross Direct Premium to rise by 26%-29% in FY22 📈
✴️ ICICI Lombard and Clove Dental come together to provide OPD, dental insurance 🤝🏻
✴️ Go Digit receives a capital infusion of ₹ 50 Mn. from RS Filmcraft 🤑
✴️ Gamified app launched by Health Safe Today to secure medical records digitally 🖥️
✴️ Onsurity launches Onsurity Edge Credits Program for startups 🏢
✴️ Plum launches Plum-Lite for gig workers 🤩
- As per the annual report released by IRDAI on 22nd December 2021, the net incurred claims of standalone health insurers increased by 5.34% in 2020-21 as compared to 35.47% in 2019-20.
- Incurred Claim Ratio is the overall value of every claim a company has paid divided by the total sum of premium collected during the same period.
- The incurred claim ratio of overall general insurers increased 2.92% which was lower as compared to 7.26% during the financial year 2019-20.
- The net incurred claims of standalone health insurers were ₹6779.09 Cr. in 2020-21 and ₹6,435.43 Cr. in 2019-2020 whereas the incurred claims of general insurers were ₹1.12 Lakhs Cr. in 2020-21 as compared to ₹ 1.08 Lakh Cr. in 2019-20.
- While the incurred claim ratio of private sector general insurers increased by 2.40%, and that of specialized insurers increased to 132.43%, PSU general insurers reported a 4.01 % decrease in their incurred claim ratio.
Sources: Financial Express | The Week
- The demand for health insurance has increased since the pandemic, as per Care Ratings’ latest research, and this demand will remain strong in the future too.
- In the non-life segment, health insurance collected more premiums than other products as more and more people purchased health insurance in the pandemic due to the fear of getting hospitalized, and the increased medical cost in private hospitals.
- As per Care Ratings in FY14-FY21, the health insurance premiums have grown at a CAGR of 18% whereas the overall non-life insurance industry grew at 14%.
- Health insurance premium has grown strongly due to the surge in premium income of private companies and standalone health insurance companies.
- CARE expects health insurance to grow at approximately 26%-29% in FY22 and is likely to grow at around 16%-18% CAGR over the next 5 years after FY22.
- It believes that this growth will be driven by various factors such as increasing life expectancy, urbanization, income levels, pandemic-led awareness, a higher number of individuals subscribing to health insurance, existing customers increasing their sum assured, availability of a wide range of products that offer varied health covers, and possible rate increase considering the increase in claim ratios in FY21 and the first half of FY22.
- The long-term drivers include the fact that both insurance penetration (4.2%) and insurance density ($78) is low in India.
Source: IIFL Securities
- ICICI Lombard has partnered with Clove Dental India, a network of Oral clinics, to offer dental insurance. The firms will be providing OPD benefits of ICICI Lombard on a cashless basis to the customers.
- Generally, dental insurance is not covered separately in most health insurance policies. Inpatient expenses are covered under health insurance, but OPD expenses like doctor consultations, dental treatments, diagnostic tests, etc. are excluded.
- With this partnership, ICICI Lombard aims to provide the right oral and dental healthcare to customers by offering affordable, easy-to-access, and hassle-free dental insurance solutions.
- Clove Dental was started in 2011. It is a network of dental clinics in India spread across 350+ clinics.
- Go Digit, in their press release on the 21st December 2021, announced that they received a capital infusion of ₹ 50 Mn by RS Filmcraft.
- Go Digit has also raised funds of around ₹990 Cr. from its parent company Go Digit Infoworks Pvt. Ltd.
- Digit Insurance was started 4 years ago with a mission of making insurance simple and jargon-free for a layman to understand and has over 20 million customers today.
- RS Filmcraft is a private company located in Mumbai and was incorporated on April 14, 2021.
Source: Times of India
- Health Safe Today launched 'Keypr' - an app that will help users save all their medical records in a secure digital format - which can be shared with doctors, family members, and other health service providers.
- Keypr will allow users to access medical specialists for themselves or their families via telemedicine service. Users can also get in-person consultations and participate in community forums to receive support from other patients and their caregivers.
- Keypr uses advanced behavior science principles and human-computer interaction frameworks to create a seamless experience for users and healthcare providers. It also uses a reward system to build up the user’s experience and streamline the overall impact of digital health services.
- The app aims to solve the age-old problem of misplacing documents by allowing people to easily access their medical records and take full control of their medical decisions.
- Health Safe Today was founded by neuroscientist and public health researcher, Dr. Suhela Kapoor. They offer various products such as Keypr for patients to save their medical records, Keypr Med for health care providers to manage their clinical practice and reach out to their patients, and Keypr Lab for all diagnostic labs to increase their reach and provide timely and efficient diagnostic solutions.
Source: Business Standard
- Onsurity, a subscription-based employee healthcare platform for startups and SMEs, launched Onsurity Edge Credits Program that will help startups provide healthcare and wellness benefits to their employees
- Onsurity aims to cover more than 10,000 small businesses through this program in the next 12 months.
- Startups who opt-in for this program will receive up to ₹25,000 credits which can be redeemed to buy comprehensive healthcare plans for their employees.
- The Program is designed for teams as low as 3 people and will be available for full-time and part-time employees as well as contractual staff.
- It will offer a wide range of healthcare benefits such as group health and personal accidental insurance for members, discounted online medicines, health check-ups, free doctor teleconsultations, free health & wellness live sessions, etc.
- Plum, an employee health insurance platform, launched Plum-lite, a comprehensive group health benefit membership exclusively for early-stage start-ups, SMEs, and gig workers.
- With this membership, companies with a team of as small as 2 members will be provided with new-age health insurance covers, doctor consultations, and covid-19 treatment covers for premiums starting from ₹85/month.
- The membership will offer health insurance cover up to ₹5 Lakhs, unlimited doctor consultations, weekly wellness sessions, dental and vision checkups, mental wellness consultations, and Covid-19 treatment claims.
- The main aim of Plum is to make employee insurance affordable for companies with a team strength of less than 10 people.
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