Covid-19 pandemic has transformed the consumer perception about insurance: Report
Online advertisements influence 55% of health insurance buyers, according to a report by WATConsult, the digital agency from Dentsu Creative India. Titled ‘Consumer’s outlook towards health insurance’, the latest issue of WATPapers explores how the Covid-19 pandemic has transformed the consumer perception about insurance, as more individuals felt the need to have financial backup to meet unforeseen medical expenditures.
According to the report, more than half of the respondents have purchased health insurance in the last six months. These policyholders belong to the age group of 25 to 35 years, residing in the top four metros as well as small metros. Most of them have purchased health insurance for themselves and their parents. With regard to the coverage duration, 32% of the respondents have purchased health insurance for up to two years. 27% of the respondents have opted for a health insurance plan for a year’s duration.
“Since the pandemic, there has been an ever-growing demand for health covers because people have realised that huge medical expenses, especially when engulfed in uncertainty can take a toll on their financial and mental well-being. In such a situation relying on savings is not enough, hence, a health insurance policy is ideal as it covers facilities like cashless treatment, maternity coverage followed by emergency room services, discounted treatment, reimbursements, and free health check-ups,” Heeru Dingra, CEO, Isobar India group said.
The report further states that when it comes to purchasing health insurance policies online, the journey from assessing the need for a health insurance policy to purchasing one is very likely to start by watching policy reviews and videos online. This enables the consumer to get familiar with the brands and options available. They then visit the brand’s website or search for suitable policies on the internet. Post which, they are likely to compare websites and evaluate a suitable policy based on the benefits and features it offers.
For Sahil Shah, managing partner, WATConsult, the pandemic has disrupted the industry by altering how people view health insurance for themselves, and their family members. “This period of an extreme health crisis, with the pandemic looming over, has led more and more people to opt for health insurance. The future looks promising for the health insurance sector with changes in the regulatory framework, which will lead to changes in the industry conducting its business. Factors such as growing awareness, the need for health protection and inclusion in the financial planning of an individual, will drive the growth of Indian health insurance sector even higher and further.”
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