Health insurers see spike in Covid insurance claims
Insurers have seen a huge surge in Covid claims in the past few months, with the number of reported claims surpassing 475,000, amounting to Rs. 7,313 crore as of October 27. Over 325,000 claims worth Rs. 3,146 crore have been settled by insurance companies so far. At the end of July, only 81,000 Covid claims were filed with insurers. August and September however, saw a huge rise in claims. Experts say claims intimated in September were close to 50 per cent of total claims since the start of the pandemic. From October, there seems to be some tapering off. “Claims have risen in line with the rise in cases. In August and September, Covid claims had peaked,” said a private sector insurance executive. This is a cause for concern for insurers. The cost of treatment for Covid is also higher than it is for infectious diseases, he added. “The number of claims should taper off,” said a chief executive officer (CEO) of a private insurer. “Loss ratios of insurers will get impacted. While they have sold Covid-specific policies, traditional Mediclaim or group health policies were never priced in for Covid. These will take a greater hit. Standalone health companies, therefore, have a bigger challenge,” he added.
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