insurance industry: Thanks to Covid, health now tops non-life insurance biz

Mumbai: The Covid-19 pandemic has provided a booster shot to the health insurance business in the country. With 130 new products launched in four months, the segment has overtaken motor to become the largest business for non-life companies. According to the insurance regulator, the dominance of health will only increase going ahead. However, the protection gap (between ailments and claims) in smaller cities remains a concern.

“The insurance industry has come up with 500 health insurance products in the last 20 years. Since March 2020, we have approved 130 new products. Health is already bigger than motor insurance and at the current rate, will increase the gap by leaps and bounds by the end of the year,” said T L Alamelu, member, Insurance Regulatory and Development Authority of India (IRDAI) at a FICCI health online insurance conference on Wednesday.

Motor insurance, which accounted for 38% of industry premiums, has fallen to 30% while health, which was 30% last year, has risen to 33%. Data collated by the General Insurance Council shows the retail health portfolio of non-life insurers up to July was Rs 3,596 crore, an increase of 17%.

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