Rising value of healthcare companies, demand from the micro-insurance phase and post-Covid consciousness is pushing sale of medical insurance insurance policies in semi-urban and rural markets, in keeping with a report in Occasions of India.

As per the report, Kotak Mahindra Normal Insurance coverage has greater than doubled its rural insurance policies from 13% in FY20 to 32% by September of the present monetary yr (FY23). Throughout the identical interval, the variety of lives coated additionally rose, from 11% to 25%.

“This may be attributed to the suitable product fitment and strong demand from the micro-insurance phase,” N Ravichandran, senior govt VP & chief technical officer at Kotak Mahindra Normal Insurance coverage, advised Occasions of India.

Niva Bupa Well being Insurance coverage too noticed big development of 160 per cent within the variety of insurance policies since November 2019. The insurer stated 7 per cent of its insurance policies are from rural areas. Director & chief actuary Vishwanath stated folks have realised the significance of entry to high quality therapy with out monetary burden. “Additionally, the rising value of healthcare companies and general medical inflation within the nation have additional made medical insurance an absolute necessity,” he added.

“The will to take insurance coverage within the rural sector is rising for the reason that pandemic,” in keeping with Star Well being and Allied Insurance coverage CMD V Jagannathan. The agricultural phase accounts for greater than 23% of the standalone well being insurer’s insurance policies and lives.

In line with Reliance Normal Insurance coverage CEO Rakesh Jain, the agricultural inhabitants is predominantly coated beneath the socio-economic schemes of the Centre or state governments. “Therefore, the penetration of retail well being merchandise is relatively decrease within the rural sector.”