Evolution of the insurance industry in 2021

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The COVID19 pandemic which brought our life to a halt gave many regulatory changes to the insurance sector.  At present insurance, sector included uncertain events.  It also helped the insurance industry to see tremendous growth.

Now insurance sector has a high customer-centric approach which was not the case earlier.

     The revolution not only improved the protection and welfare of the insured but also on the landscape of technological and digital advancement.

In-home treatment coverage:

     In-home treatment means when a patient is treated at home while their condition requires them to be hospitalized.  Moreover, a patient’s serious condition can also be taken into account. Now the in-home treatment is also included after the arrival of covid19.  It is made possible due to the shortage of beds during the second wave.

     This scenario is added in the latest guideline of the insurance regulatory body.

The guideline refers to adding in-home treatment in new policies.  Moreover, it can be added to the existing policy by charging an extra premium.

Inclusion of online consultation:

     The arrival of covid19 brought social distancing and restrictions in travel.

Thus online consultation replaced hospital visits.  It not only helped covid19 patients but also patients with other diseases.  Thus online consultation charges are covered along with outpatient department charges.

Paperless digital insurance:

     The covid19 situation brought digital advancement.  Now both health and general insurance companies can issue health policies in digital form without the norm of physical signature till march 31, 2022.

Though covid19 was introduced now the demand is there to make it a permanent solution.

Insurance for all people:

     After covid19 now the insurance policies cover most common features for diverse kinds of people.  Moreover, travel and personal accident policies are also included in this guideline.

Covid19 made IRDAI bring travel insurance policy like Bharat Yatra Suraksha which should be offered from general and health insurers from July 1.  It gives coverage from 1-10 lakhs from accidents and accidental cover from 1lakh to 1crore.

     Thus insurance industry has a large potential to grow and it is ready with its evolutionary resources for the future.  Moreover, IRDAI has brought guidelines for drafting product design and pricing which is a great move.