Health insurance provides the dual benefit of financial protection, while also acting as a safeguard against medical debt-induced poverty. Now, the advent of digital tools, machine learning, Blockchain, and the convergence around IoT and cloud-based wellness devices and programmes will open more avenues towards providing superior value to customers.
The 77th round of the All-India Debt & Investment Survey reveals that medical treatment constitutes nearly 12 per cent of the total household debt in India. This is compounded by the fact that India’s out-of-pocket expenditure is at a staggering 62.7 per cent of the current healthcare expenditure in 2018, whereas the global average is only 18.1 per cent in the same period.
In this context, health insurance assumes significance, as it provides financial protection to people and prevents them from medical debt-induced poverty. The industry has played a very important role in India, especially during the covid-19 pandemic, when nearly Rs 25,000 crore of covid claims were paid.