According to a study by Digit Insurance, a private general insurer, there has been a 3.5 times increase in health insurance claims in 2021. In 2020, while both metros and non-metros reported an almost equal number of Covid-19 claims, the trend changed in 2021 as non-metropolis reported 17% more claims than metros.
The study is based on Digit’s claims settlement data as well as for group health products assessed between January and December of 2020 and 2021. The insurer compared 2021 figures to 2020 figures to understand how trends affected over the two years. Covid-19 pandemic.
The delta variant in the second wave caused higher hospitalizations across the country in 2020 than the first wave of the pandemic. This led to a 257% increase in overall health claims in 2021 as compared to the previous year.
Commenting on the findings of the study, Mr. Vivek Chaturvedi, Head of Direct Sales, Digit Insurance, said, “The increase in the number of claims in 2021 indicates increasing awareness for health insurance products after the onset of the COVID-19 pandemic. The surge in claims, especially from non-metropolitan cities, is a testament to how the pandemic affected smaller towns. The similar ticket sizes of metropolitan and non-metropolitan cities suggest that the gap in healthcare costs is narrowing, which highlights the need for faster adoption of health insurance in locations beyond metropolitan cities.”
In terms of overall claims also, non-metropolis reported 51% more claims in 2021 than metros. In the same year, total claims from non-metropolitan cities increased by almost 300% as compared to 2020.
Across all hospital types, the average claim size in 2021 decreased by more than 21% compared to the previous year. For Covid-19 claims in 2021, the average claim size in metros and non-metros was almost the same 69,259 and 68,919 respectively.
The average size of the total claim for women in 2021 was 51,692, whereas it was the same for men 66,636, a difference of 29% between the two sexes. For Covid-19 claims, the same difference was 32%.
Telangana, Maharashtra, Karnataka, Gujarat and Tamil Nadu reported the highest* overall claim size in 2021.
Policyholders in the age group of 25-35 and 36-45 reported the highest number of claims in 2021. A similar trend was observed in 2020 as well.
In 2020, COVID-19 accounted for about 69% of Digit’s overall health claims and in 2021, it was 54%. Digit’s health portfolio grew by 218% during this period.
Digit’s study shows that in 2021 men reported 127% more claims than women. In 2020, it was 283%. “While we are seeing a gradual increase in women opting for health insurance, the huge difference in the number of claims reported by men and women shows that there is still a long way to go. It is important for women to buy insurance and insurance companies should also work collectively to create awareness among them.”
The study considered only cities that reported more than 1,000 claims.
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