7 out of 10 Indians chose cost-effective health coverage in FY24, as per Policybazaar survey

Policybazaar, a Gurgaon-based digital insurance platform, witnessed a rise in affordable health insurance as 7 out of 10 people chose cost-effective coverage in FY24; most buyers were among elderly age groups, according to a company's report.
 
According to PolicyBazaar's report, customers who are opting for affordable health insurance plans are mostly (60 per cent) first-time insurance buyers, and the age group over 55 years comprises the largest percentage of affordable health insurance buyers, accounting for 34 per cent of the total; this is closely followed by customers in the age group of 41-55 at 29 per cent.
 
Further, the report says that at least 25 per cent of senior citizens are reducing their co-payment to 0 per cent.
 
Co-payments, which are generally selected by older persons, to keep premiums low, were previously required for anyone entering plans after the age of 60. Currently, many plans either eliminate co-pays or offer the opportunity to decrease them to 0 per cent by paying an additional premium.
 
In February this year, Policybazaar, a subsidiary of PB Fintech, received authorisation from the Insurance Regulatory and Development Authority of India (IRDAI) to operate as a composite insurance broker. This will allow the company, as a direct insurer, to offer reinsurance products in addition to its existing general and life insurance services.
 
"60 per cent of affordable health insurance customers select at least one rider when purchasing a plan. More than 65 per cent of customers choose consumable riders, with 33 per cent choosing Day 1 cover riders for common conditions such as asthma, blood pressure, cholesterol, and diabetes. Furthermore, 17 per cent of clients favour room rent adjustment riders, while 15 per cent prefer cumulative bonus booster riders," according to PolicyBazaar's report.
 
Meanwhile, 30 per cent of customers who already have employer-sponsored medical insurance are opting for a retail health insurance policy with deductibles to make their plan affordable and customisable as per their needs.
 
However, policyholders typically opt for a minimum sum insured of Rs 5 lakhs, with popular choices ranging between Rs 5 and Rs 7 lakhs. Out of the total customers, 15 per cent opted for ‘Preferred Hospital Network’ option, which allows for up to 15 per cent discount on the premium.
 
In a separate report last week, PolicyBazaar informed that the company is seeing huge growth in non-resident Indians (NRIs) purchasing term insurance in India through its platform. This spike is fueled by the Indian insurance market's exceptional convenience, affordability, and accessibility. While various factors contribute to India's increased interest in term insurance, price and convenience stand out as the key drivers. Demand among the 18-60 age bracket has grown by an astonishing 130 per cent year-on-year, with India becoming the favourite destination for NRIs.