SIES COLLEGE OF MANAGEMENT STUDIES

Penetration for insurance products

increase post Covid-19 Era

Subject: -Business Statistics

Date of Submission – 15/3/202

Submitted by : MMS -B Batch

Group no -8
99- Yogesh Udayar
100- Pratik Warulkar
101- Shubham Mapara
102- Siddhesh Jadhav
103- Abhishek Moorkundam
Abstract:
Coronavirus pandemic had pulverizing impact on each area separated from health
care coverage. Medical coverage area denoted a fair development during this
antagonistic circumstance in India. Developing wellbeing worry of individuals during
the pandemic alongside assortment of items offered explicitly custom-made to
Coronavirus circumstance were the principal explanations for this development.
Medical coverage area invades other non-disaster protection areas without
precedent for 20 years.
This paper is an endeavour to concentrate on the impact of COVID-19 pandemic and
its general impact on the matter of Indian extra security area. The review is
exploratory in nature and consequently give new understanding to related future
investigates. To direct the review, the auxiliary information has been gathered from
different paper articles, online web journals, site and yearly reports of disaster
protection organizations. The paper covers different aspects like First year premium,
Sum guaranteed, No. of lives covered under bunch conspires, No. of approaches
gave and furthermore try to break down the general execution of extra security
organization in FY 2020 as against the past FY 2019. Auxiliary information has been
acquired to drive the study from various paper publications, online web journals, site,
and yearly reports of disaster prevention agencies. The article discusses several
variables such as the first year premium, the sum guaranteed, the number of lives
protected under group conspiracies, the number of approaches given, and the
overall execution of additional security organisations in FY 2020 as compared to the
previous year.

The specialists view that the interest of unadulterated and health care coverage has
been shown a positive development because of life vulnerabilities during Covid-19
pandemic.
It could be noticed that India has generally been an underinsured country, with
private medical coverage plans covering just 18% of the populace in metropolitan
regions and a little more than 14% in provincial regions. Albeit the hole has been
crossed over to some degree by Ayushman Bharat, which has endeavoured to
guarantee poor people and helpless, the greater part of India keeps on being
underinsured with regards to wellbeing.

The protection business not just gives security against life and non-life gambles yet
additionally give immense work and contributes close by 7% absolute GDP of an
economy.
The review utilizes subjective and quantitative meetings to gauge the effect of the
pandemic.

Key Words: Covid-19 pandemic, health insurance, insurance sector, lockdown,

digital, customized
1. Introduction:
COVID-19 has a good influence since more individuals are starting to invest in health
insurance. According to available data, health insurance-related enquiries have
increased by 50 percent %, and the amount of time spent talking has also grown
dramatically. throughout the last several weeks the COVID-19 epidemic is the most
serious anticipated to improve health-insurance growth in a relatively short period of
time Increase the amount of health insurance available to the underinsured market
rate of penetration A number of insurance companies are doing this tailored plan to
guarantee that coverage is not impacted. The outbreak of the pandemic has
compelled firms from a variety of industries to adapt the way they operate. The
insurance sector is no exception to this rule. From the protracted lockdown ranged
from selling new insurance to resolving claims. In the aftermath of Covid-19,
insurance companies have been compelled to adopt new policies rely on strongly
based on their digital infrastructure Why is this so? COVID-19 plans aren't selling as
well as other health insurance products.
The COVID-19 specialised insurance policies are the COVID-19 insurance plans
have issued a slew of terms and conditions, many of which are unfavourable to
them. Customers do not believe it is worthwhile to purchase it. A general, on the
other hand, is a broad term that encompasses many different a variety of benefits
and features are available with health insurance policies to deal with the pandemic,
there are several advantages. They can’t rely on anything for comprehensive
coverage, COVID-19 specific policies are required. However, people appear to be in
good financial shape and have a good grasp of their finances. They are really
concerned about the threat to their and their families' safety. The physical well-being
of the members of the family as a result, people are becoming more conscious of the
situation. Health and life insurance are today more important than they have ever
been ever.

1.1 Brief about sector:

The Indian insurance sector consists of 57 insurance firms, 24 of which are life
insurers and 33 of which are non-life insurers. Life Insurance Corporation (LIC) is the
sole public-sector life insurer. Apart from that, there are six public sector insurers
among the non-life insurers. In addition, there is just one national General Insurance
Corporation of India. . The Indian insurance industry includes brokers, dealers,
surveyors, and third-party administrators who handle health insurance claims.
Market Size: The government's objective of safeguarding the uninsured has
increasingly driven insurance penetration and the proliferation of insurance schemes
in the country. Non-life insurers' gross direct premiums in India reached US$ 20.33
billion in FY20 (up to December 2019), while life insurers' gross direct premiums hit
Rs 410.71 billion (US$ 5.87 billion), representing a 14.47 percent year-on-year
growth rate. Total insurance penetration (premiums as a percentage of GDP) in India
increased to 3.69 percent in 2017 from 2.71 percent in 2001.
Premiums from new life insurance business climbed 10.73 percent year on year to
US$ 30.7 billion in FY19. Non-life insurers' gross direct premiums reached US$
24.82 billion in FY20 (through February 2020), representing a 14.03 percent year-on-
year increase. In the same period, private sector insurers had a 17% increase in
premium collection, while state-owned non-life insurers saw a 9% increase.
The private sector's market share in the non-life insurance market increased from
13.12% in FY03 to 55.70% in FY20 (up to April 2019).
After doing a study of the current environment of the Health Insurance Industry using
Porter's Five Forces model, we can conclude that
1.Threats of New Entrants
New entrants in Health Care Plans provide innovation, new ways of doing things,
and put pressure on Health Insurance Innovations, lower pricing approach,
decreasing expenses, and giving new value propositions to clients. To maintain its
competitive edge, Health Insurance Innovations must handle all of these problems
and construct effective barriers.
2.Bargaining Power of Suppliers
Almost all firms in the Health Care Plans market get their raw materials from a
variety of vendors. Suppliers in dominating positions might reduce the market
margins Health Insurance Innovations can receive. Powerful suppliers in the
Healthcare industry utilise their negotiation leverage to exact higher rates from
enterprises in the Health Care Plans area. Higher supplier negotiating power
reduces the overall profitability of Health Care Plans.
3.Bargaining Power of Buyers
Buyers may be a difficult bunch. They want to acquire the greatest products at the
lowest feasible price.
This put a strain on the long-term profitability of Health Insurance Innovations. The
smaller and more strong Health Insurance Innovations, Inc.'s client base is, the
greater the customers' bargaining strength and capacity to demand growing
discounts and offers.
4.Threats of Substitute Products or Services
When a new product or service addresses comparable client demands in different
ways, industry profitability falls. Services such as Dropbox and Google Drive, for
example, serve as a substitute for physical storage discs. The danger of a
replacement product or service is strong if it delivers a value proposition that is
distinct from the industry's current offerings.
2. Literature review:

Sonal Kala and Dr. Premila

Jain(2015), This study
focused upon the awareness of
health insurance
among secular in Rajasthan Area
(India). This study
also provides ideas for health
insurance companies to
deal with their limitations and to
grab the
opportunities more in the market.
III. Satakshi Chatterjee, Dr.
Arunangshu Giri, Dr. S.N.
Bandyopadhyay (2018), study
indicates the overall
healthcare insurance sector of
India, point out the
challenges faced by the healthcare
insurance industry
of India and analyze at the insurance
models of other
countries in terms of healthcare.
IV. M. Vinoth (2019), study is
concerned with the Health
insurance schemes of selected
companies in India in
order to analyze the position of
the individual
company are to be calculated and
also analyze the
company’s claims, settlements and
premium.
V. Sushil Kumar, Dr. Harpreet
Singh (2019), The
objectives of the present study are
to examine the
growth in health insurance industry.
Under this study
four standalone health insurance
companies were
selected for the period of five years
from 2013-2014
Kumar & RamaMoorthy (2013) ,observed that medical insurance quarter in
India is growing. Emergence of recent merchandise is the principal cause at
the back of this. Government has to attempt to consist of each person
beneath Neath medical insurance

Sonal Kala and DrPremila Jain(2015), This examine cantered upon the
attention of medical health insurance amongst secular in Rajasthan Area
(India). This examine additionally offers thoughts for medical health insurance
corporations to cope with their obstacles and to seize the possibilities greater
withinside the market.

Swathi &Anuradha (2017) ,Believed IRDA must take efforts to sell coverage
amongst humans via way of means of selling opposition amongst insurers.
Offering range merchandise at low value will without a doubt assist in this.
The authorities might also take tasks to cowl all beneath Neath medical health
insurance via way of means of supplying range merchandise.

Binny and Gupta (2017), Believed there's a want for brand spanking new
coverage merchandise and coverage commercial enterprise fashions to sell
fitness coverage. There is a want for widespread fitness coverage to cowl all
and an statistics financial institution via which clients can evaluate the goods
provided with the aid of using distinctive fitness insurers.

Ms. Satakshi Chatterjee, DrArunangshu Giri, Dr. S.N. Bandyopadhyay (2018),

have a look at suggests the general healthcare coverage region of India,
factor out the demanding situations confronted through the healthcare
coverage enterprise of India and examine on the coverage fashions of
different nations in phrases of healthcare.

Mr.M. Vinoth (2019), look at is worried with the medical insurance schemes of
decided on agencies in India to examine the placement of the man or woman
 enterprise are to be calculated and additionally examine the enterprise’s
claims, settlements and premium.

Mr. Sushil Kumar, Dr Singh (2019), The targets of the existing examine are to
observe the increase in medical health insurance industry. Under this
examine 4 standalone medical health insurance organizations have been
decided on in 5 years from 2013-2014 to 2017-2018.

Singh & Singh (2020) determined that coverage zone in India became
unsaturated. But this zone is growing. Private gamers in conjunction with
overseas gamers coming into this zone have been the primary motive for this.
IRDA must take steps to sell opposition and authorities must take efforts to
encompass medical health insurance withinside the curriculum of college and
university students.

3. Objectives:
 To understand the basics of health insurance market.
 To study increase in demand of health insurance post covid.
 To study the source of information that leads to buying of health insurance by
the customer.
 To study whether work environment or nature of work causes health
problems.

4. Scope:

The scope of this study is to basically have a detailed analysis on impact of covid-19
pandemic on health insurance and how Indian people approached
changed for buying health insurance post covid -19 . Also, the aim is to study
whether work environment or nature of work causes health problem that
leads to buy working population health insurance.

5. Hypothesis:

H0: There is no relation between gender and demand for type of insurance.
H1: There is relation between gender and demand for type of insurance.

H0: There is no relation between age and health problems caused due to nature of work.
H1: There is relation between age and health problems caused due to nature of work.
H0: There is no relation between age and health insurance taken before/after covid.
H1: There is relation between age and health insurance taken before/after covid.

6. Research Methodology:

A primary study has been done by preparing a questionnaire and distributing it to

people of different age groups. The main purpose of the questionnaire
was to analyse demand of health insurance post covid. Also, to understand which
health insurance majority of people buy. Other secondary data sources include a
variety of websites that can be utilised to learn about the health insurance industry's
history and current
developments. Google Forms' (forms.google.com) statistics capability was utilised to
create bar graphs and pie charts of the data received from the
questionnaires. Second, MS Excel 2021 was used to analyze the information and
run multiple tests on the hypotheses to ensure that they were realistic.

7. Data Analysis and Interpretation:

Chi-Square test -1 (gender vs demand for type of insurance post covid)

Demand for Type of Insurance
Life Health Tota
  insurance insurance l
  Male 5 41 46
Gende Femal
r e 6 48 54
  Total 11 89 100
 Demand for Type of Insurance
48
41
50
40
30
20 5 6

10
0
Males Females

Health insurance Life insurance

Figure 1: Response to statement - After covid do you think health insurance is
more important than Life insurance

H0: There is no relation between gender and demand for type of insurance
H1: There is relation between gender and demand for type of insurance

Observed Expected value = Rt

value(O) *Ct/Gt
5 5.06
41 40.94
6 5.94
48 48.06

Significance value = 0.9693

Since the significance value is greater than 0.05, we accept H0 and conclude that
there is no relation between gender and demand for type of insurance.

Chi-Square test -2 (age vs health problems due to nature of work)

health problems due to nature
of work
  Yes No Total
  21-30 23 29 52
 Age 31-45 3 5 8
  46-60 8 17 25
  Total 34 51 85

Health problems due to nature of work

60
50 51
40
29 34
30 17
20
23 5
10 8
0 3
21-30 31-45 46-60 Total

Yes No
Figure 2: Response to statement - Is your work environment or nature of work
likely to cause health problems

H0: There is no relation between age and health problems caused due to nature of work
H1: There is relation between age and health problems caused due to nature of work

Observed Expected value = Rt *

value(O) Ct/Gt
23 20.8
29 31.2
3 3.2
5 4.8
8 10
17 15

Significance value = 0.5841

Since the significance value is greater than 0.05, we accept H0 and conclude that
there is no relation between age and health problems caused due to nature of work.

Chi-Square test -3 (age vs health insurance taken before/after covid)

Health Insurance taken
  before/after covid
 Tota
Before Covid After Covid l
  Below 20 4 1 5
  21-30 34 21 55
Ag
e 31-45 7 2 9
  46-60 28 3 31
  Total 73 27 100

When did you take your health insurance

46-60 3
28

31-45 2
7

21-30 21
34

Below 20 1
4
0 5 10 15 20 25 30 35 40

After Covid Before Covid

Figure 3: Response to statement - When did you take your health insurance

H0: There is no relation between age and health insurance taken before/after covid.
H1: There is relation between age and health insurance taken before/after covid.

Observed Expected value = Rt *

Value Ct/Gt
4 3.65
1 1.35
34 40.15
21 14.85
7 6.57
2 2.43
28 22.63
3 8.37

Significance value = 0.037

Since the significance value is less than 0.05, we reject H0 and conclude that there
is relation between age and health insurance taken before/after covid.
8. Findings:

Parameter No of people having Percentage (%)

health insurance
Gender
Males 46 46
Females 54 54
Total 100 100
Age
Below 20 5 5
21-30 55 55
31-45 9 9
46-60 31 31

Table 1: Demographics of the respondents.

The above table shows that 46% of the people who responded are males and 54%
are females. It is observed that a greater number of females have responded to the
questionnaire than males.
Now coming to the age, only 5% respondents belong to age group below 20.
Majority of the respondents belong to age group 21-30 which is 55%. Further people
belonging to age group 31-45 are only 9%. Lastly 46-60 years age group consist of
31%.

Life Insurance Corporation of India 43

New India General Insurance 13
Care Health Insurance 7
Bajaj Allianz General Insurance 7
Star health Insurance 5
The Oriental Insurance Company 5
HDFC Ergo 4
Employer 2
Aditya Birla Health Insurance 2
National insurance 2
Medi assist 1
Mayfair Group 1
Tata AIG 1
Royal Sundaram 1
Vipul Medcorp 1
The New India Assurance Co. Ltd 1
GIS 1
 Contributory health services 1
Esic 1
Rly 1

Table 2: Preference for health insurance of different companies

From the above table, it can be observed that majority of people have Life Insurance
Corporation of India health insurance with them. It is followed by New India General
Insurance, Care Health Insurance, Bajaj Allianz General Insurance and so on.

Name of the sources Value

Friends and Relatives 55
TV Advertisement 43
Insurance Agent 41
Internet 41
Newspaper Advertisement 23
Hospital 13
Company broachers/events 12
Outdoor Advertisements 9

Table 3: Name of sources which give information about health insurance

The main source through which people get the information about the health
insurance is their friends and relatives. 55% respondents voted for it. TV
advertisements also play a vital role as we can see 43% voted for it. This is followed
by insurance agent and internet which shares same value. Newspaper
advertisements, hospitals, company broachers and outdoor advertisements also
provide information regarding different health insurance available in market.

Coverage of covid 19 in Value

existing health insurance
Yes 52
No 48

Table 4: Coverage of Covid 19 in existing health insurance

Out of 100 respondents, majority of them got covid 19 coverage in the existing health
insurance policy. It consists of 52%. Rest 48% said they didn’t get coverage.
9. Conclusion:

The COVID-19 epidemic is a assignment for the medical insurance quarter on

numerous fronts, however it additionally offers an opportunity. While being
immensely beneficial to society, coverage companies can be capable of assist it
similarly through product improvement projects and making sure their attain is broad.
IRDAI and coverage businesses are devoted to supporting COVID-19 patients. The
World Health Organization has declared COVID-19 a international pandemic. In the
occasion of a pandemic, coverage businesses restrict their coverage. During a
pandemic, human beings are greater aware about medical insurance and feature a
higher information in their function on medical insurance. We do a comparative
evaluation of medical insurance companies and compare the way it influences
purchaser shopping behaviour.

The COVID-19 epidemic additionally offers a hazard for coverage companies to

innovate and meet the converting necessities of a greater knowledgeable populace.
Several coverage companies will introduce COVID-19 coverage applications in
March and July 2020. Other companies can also additionally comply with in shape
and increase comparable items. These merchandises have a tendency to be quick
time period and convey constant benefits, protecting a hard and fast quantity greater
than the hospitalization schemes.
Covid-19 pandemic gave an impetus to the boom medical insurance quarter in India.
People have become greater aware of the want for medical insurance. IRDA got
here with many new rules which had been useful to the coverage holders. This
attracted many human beings. Also, authorities is taking a lot attempt to cowl all of
the human beings below any sort of medical insurance. An coverage to cowl all,
each wealthy and negative is the want of the hour. All those suggest the brilliant
destiny of this quarter withinside the coming years.

10. Limitations and Future Scope:

Demerits of Individual Health Insurance

A character medical health insurance coverage covers now no longer simply the
insured, however additionally the dependents. Individuals with fitness dangers ought
to have character medical health insurance plans. They may also should pay better
premiums. you could go through scientific exams earlier than availing medical health
insurance. Pre-current situations commonly extrude the quilt and top rate presented.
Alternative remedies aren't covered. Health Insurance Plans do now no longer cowl
remedy associated with tablets and alcohol intoxication.

Demerits of Family Floater Plans

Family floater medical health insurance plans cowl the own circle of relatives of the
policyholder. Ravi had availed a own circle of relatives floater medical health
insurance plan with sum confident of Rs three Lakh to cowl five own circle of
relatives members. The complete own circle of relatives stands to get the coverage
benefit. Just like character medical health insurance plans, even own circle of
relative’s floater regulations has positive demerits, which encompass:

• A few own circles of relative’s floater fitness plans have an age restrict of 60 years.

• They may also or might not offer the desired cowl to a own circle of relatives. In
case of character medical health insurance plans, the sum confident may be without
difficulty determined. This isn't always the case with own circle of relative’s medical
health insurance.

• The age of the eldest member of the family decides the top rate of own circle of
relative’s floater medical health insurance plan. Not all own circle of relative’s floater
medical health insurance regulations are flexible. For example, a few regulations
permit policyholders to encompass their parents, even as others do now no longer.

Demerits of Family Floater Plans

Family floater medical health insurance plans cowl the own circle of relatives of the
policyholder. Ravi had availed a own circle of relatives floater medical health
insurance plan with sum confident of Rs three Lakh to cowl five own circle of
relatives members. The complete own circle of relatives stands to get the coverage
benefit. Just like character medical health insurance plans, even own circle of
relative’s floater regulations has positive demerits, which encompass:

• A few own circles of relative’s floater fitness plans have an age restrict of 60 years.

FUTURE AHEAD

After post covid -19 the destiny of medical health insurance zone in India may be
very bright. There is a big boom potential. There is a risk for the issuer to feature
increasingly more range to draw precise brackets. Since the notice of humans
increased, there may be a risk to make greater earnings with much less publicity.
Publicity concerning the want has already given via way of means of the pandemic.
There is simplest the want for propagating and distinguishing product sorts
presented via way of means of exclusive providers. So, in destiny this zone goes to
take a leap.

11. Reference:
1. A Study of Health Insurance in India, International Journal of Management, IT &
Engineering Vol. 10 Issue 04, April 2020 ISSN: 2249-0558 Impact Factor: 7.119.

2. A Growth Analysis of Standalone Health Insurance Companies, IRJMSH Vol 10

Issue 10 [Year 2019] ISSN 2277 – 9809 (0nline) 2348–9359

3. COVID 19 – IMPACT ON PUBLIC HEALTH AND ECONOMY OF THE NATION

ISSN:0971-2143 Vol-31-Issue-12-April-2020.

4. The Impact of A Corona-19 Pandemic On Indian Economy ISSN:0971-2143 (UGC

Care Journal) Vol-31-Issue-11-April-2020.

5. https://www.researchgate.net/publication/346676656_Impact_of_COVID-
19_on_Health_Insurance_Sector.

6. Saon Roy etal. (2020), India’s Insurance Sector: Challenges and Opportunities.
Indian Council for research on international economic relations, July 2020.

7. Impact of coronavirus on health and life insurance, policy bazaar, 12 August 2020.

8. The Impact of A Corona-19 Pandemic On Indian Economy ISSN:0971-2143 (UGC

Care Journal) Vol31-Issue-11-April-2020