Run for cover? Indians mull increasing their health insurance amid coronavirus

A study conducted by Facebook and the Boston Consulting Group (BCG) found that over 45% of urban Indians are planning to increase their health insurance spending in the next six months over risks induced by the coronavirus pandemic, according to an Economic Times report. The study predicts a sharp rise in demand for health insurance as well as an increased influence of digital modes for purchasing insurance.

The report forecasts strong sentiment for Life and Helath insurance due to "an increased focus on health and immunity and near-term income concerns."

Vikash Jain, Managing Director and Partner, Boston Consulting Group said that despite the income uncertainty during coronavirus lockdown, the Insurance category has witnessed positive spending sentiment due to the increased consumer focus on health, wellness, and safety, as a result of the pandemic.

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According to the report, over 60% of insurance purchases were digitally influenced.

Sandeep Bhushan, Director and Head, Global Marketing Solutions, Facebook India said, “Covid-19 has disrupted the agent network's ability to generate leads which they used to do using predominantly offline channels.” “Top insurers are working with FFOAS to use our hyperlocal solution that will allow them to generate leads at an agent level for hundreds of their agents,” he further added.

“We are also working with top insurance companies to start conversation-based customer acquisition using Whatsapp and Facebook Messenger platforms,” said Bhushan.

In the urban and affluent segment, 30% of the consumers were influenced by digital modes while deciding on purchasing insurance schemes before the pandemic. But that number has risen to nearly 40-45%, the study found.

While Facebook will not directly get into the business of selling insurance, it sees its position in the broader fintech ecosystem as a digital interface between customers and financial institutions for front-end communication. The social media giant has also tied up with several leading banks including HDFC Bank, ICICI Bank, Kotak Mahindra, and RBL Bank for providing basic banking services on Whatsapp.