Policybazaar records 87% surge in customers opting for pre-existing diseases coverage in Q4 FY23

On the occasion of World Health Day, Policybazaar's analysis highlighted the changing preferences of consumers when it comes to health insurance. Some notable insights are:

Non-metros fare better: The health insurance coverage in non-metro cities recorded 41 percent and 37 percent increase in customers from tier-2 and tier-3 cities, respectively, in contrast to a 24 percent uptick in tier-1 cities. The increase also indicated towards improved access to protection products through online financial services.

Rise in high-sum insured policies: Consumers are increasingly opting for high-sum insured policies as protection against the rising cost of medical treatment. The data showed a 56 percentincrease in the number of customers opting for coverage higher than Rs 5 lakhs, with 61 percent of customers choosing this level of coverage in Q4 FY23, compared to only 39 percent in Q4 FY22. Conversely, the number of customers choosing a sum insured of less than Rs 5 lakhs has declined by 36 percent.

Top features demanded: Not only this, the customers are also showing interest a growing interest in insurance riders that provide additional coverage and benefits. Recent data suggests that the rider for a higher cover amount ranks at the top of the most-requested features by consumers. Other popular riders are coverage for annual health check-ups and OPD (outpatient department). Around 60 percent of the customers look for an annual health check-up feature in their policies, showcasing a growing inclination towards preventive healthcare.

Wellness benefits are sought-after: The demand for preventive healthcare is also reflected in the high demand for wellness benefits wherein customers are entitled to discounts or benefits upon renewal for meeting the fitness criteria in their policy. As many as 45 percent of customers look for wellness benefits, which not only characterizes growing consumer awareness for healthcare but also for new-age features in health insurance products.

As per Policybazaar, the other features that emerged as popular choices in the findings were locking premium as per age, 7x higher sum assured, unlimited restoration benefit and low or no waiting period for senior citizens. "These innovative features make health insurance plans more flexible and customizable to suit changing consumer needs," it said.

Sarbvir Singh, Joint Group CEO, Policybazaar.com, said, “As a principle, Policybazaar has always been guided by the consumer, and so we develop new-age solutions that align with dynamic consumer needs. With the insurance industry evolving to focus on prevention as well as protection, these consumer insights also reflect a growing appetite for wellness and preventive healthcare features. The change in consumer sentiment is also evident with tier-2 & tier-3 cities showcasing a higher inclination for health insurance protection.