Insurers say the 1 crore insurance concept first began with the life insurance industry, and for the health insurance industry it is a recent pandemic-induced trend. A family of three, a couple and a boy, will have to pay 25,000-35,000 for a 25 lakh-1 crore insured total, and a person may be able to pay as low as 18,000 annually. "A fact is captured by advertising by insurers: "If you pay 500-700 for your mobile bill, why not fork out the same for a health policy?
Insurers claim that this segment is now their largest area of expansion. At ICICI Lombard, for example, in the up to Rs 25 lakh range, the insurer saw 10-15 percent growth and more than 50 percent growth in the Rs 25-50 lakh segment. Rs 25 lakh-1 crore growth is much higher than that of the Rs 1-25 lakh segment. There are also many moving to higher brackets on renewal in the Rs 1-25 lakh segment,” said Gurdeep Singh Bhatra, Bajaj Allianz General Insurance national head of retail underwriting.
Policybazaar insurance marketplace said that this group now accounts for 35% of sales from less than 1% of sales in 2019 (as of November 2020). We also observed that the 30-40 age group holds the largest share of transactions of high-sum insured plans, i.e. 52 percent of total customers. Out of this, only 13% have pre-existing illnesses and 87% have no pre-existing illness,’ said Amit Chhabra, Head of Business Health, Policybazaar.com.