Mr. Mayank Bathwal

CEO, Aditya Birla Health Insurance Company Ltd

As we slowly reboot and stride back to normal, we should not forget how a pandemic like COVID-19 can wreak havoc across every walk of life – be it country, organisation or people. It has changed the perception and outlook towards most of the things we used to do, forcing us to relook at every aspect of our normal life.

 Given it was a once-in-generation crisis, or more preciously as health crisis, COVID-19 has changed the perception about healthcare and health insurance industry. This is more prominent for countries like India where, according to various reports, medical treatment constituted nearly 12% of the total household debt. This is largely compounded by the fact that out-of-pocket expenditure constitutes around 65% of the total healthcare cost for an average Indian and this is mostly not covered under any standard health insurance policy.

 Prior to the pandemic, the traditional approach of the health insurance industry was primarily based on sickness-funding. This whole approach has led to an issue of relevance of health insurance amongst a large category of customers. With more than 65% of Indian population below 35years, a large part of them feel that health insurance is not relevant for them, as they believe they won’t need it because they won’t fall seriously ill or need hospitalisation in the next few years. Similarly, a large part of the population which suffers from lifestyle related disease conditions like diabetes, asthma, hypertension etc do not end up getting adequate coverage. So there was definitely a need to expand the scope of the coverage and an approach that would make health insurance relevant for all.

 COVID has helped us realise how a health emergency canput strain on our finances and wipe out our life savings within a few days.  According to the findings of the recently released report by Aditya Birla Health Insurance, the New Health Normal, people are realising the importance of a health-focused lifestyle and are actively seeking avenues that can support this healthy lifestyle both online and offline. It has impacted their behaviour as well in many ways – the technology they use, how closely they monitor their diet, adding regular exercise to their day etc.

 According to the new normal health survey, 84% of the participants believe that their awareness of health and wellness related issues has increased post COVID. More than half of the respondents (52%) in our research claim to have set aside money to use in case of medical emergencies. Furthermore, 85% of the respondents claim they would consider cutting down on some luxury items so that they could spend more on health insurance.

Recognising this shift in consumer behaviour the health insurance providers are now focussing on proactive care rather than reactive care. There is a gradual shift towards a wellness-oriented approach, focusing on promoting healthy lifestyles and preventive care.

While there has been some growth in awareness, with standalone health insurance players quadrupling their size in the last five years, however only 3% of the total Indian population buys retail health insurance policy.

Health insurance companies therefore need to play the role of a health partner in the lives of their customers. Helping them to stay healthy will make them more relevant. Now, even the regulatory framework supports incentivising customers for staying healthy.

The Government of India has also addressed that under the Ayushman Bharat scheme. Whilst there is the whole element of funding sickness insurance, there is also the presence of more than 150,000 health and wellness centres that can provide primary and preventive care to citizens across the country. Even the Insurance Regulatory and Development Authority of India (IRDAI) has brought in very enabling wellness guidelines in insurance products.

In line with this, health insurance companies are realigning their product features and are coming out with various health and wellness solutions that incentivises policyholders to remain fit.  

This results in a win-win situation for all. With rising healthcare costs, purchasing a health insurance policy with a wellness program can help people save money on their medical bills. It promotes their physical and mental well-being, provides access to quality care and prevents chronic diseases.

To sum up, there is an evident consumer behaviour transformation in the way Indians look at health and wellness. Consumers are more cautious about their overall health and more prepared for financial emergencies. However, as ever, adopting a new habit is a challenge for most, and the need of the hour is to motivate and encourage people to complete the last mile in their health journey. The ultimate objective is a Fit and a Healthy India.