The general insurance industry is gearing up to bring in new products in line with the insurance regulator’s decision to remove the upper age limit of 65 years for health insurance policies. 

The insurance regulator had already notified the change in the norms, which came into effect from April 1, 2024 and advised the insurers to to design products specifically for senior citizens along with students, children, maternity and other groups

According to Rakesh Jain, CEO, Reliance General Insurance, IRDAI’s decision to abolish age restrictions on health insurance is a ‘ground-breaking move’ that opens the doors of comprehensive healthcare coverage to all, irrespective of age. 

“For senior citizens, this initiative signifies an end to the constraints that previously barred many from securing health insurance past a certain age. This move fosters financial security by allowing older individuals at vulnerable age to access crucial healthcare without age-based barriers,’‘ he told businessline. 

Market Dynamics

The competitive market dynamics spurred by this change may result in improved offerings and services for consumers. Insurers will now be encouraged to design products that cater specifically to the needs of senior citizens, including those with pre-existing conditions. 

“However, insurers must adapt underwriting practices to manage increased risks associated with insuring older demographics effectively. With no age limit, the opportunity for adequate protection against medical expenses is now a reality for everyone, marking a significant step towards a more inclusive and accessible healthcare ecosystem,’‘ Jain said. 

The decision taken by the IRDAI to remove age limitations on health insurance is a positive step towards fostering competition and innovation within the health insurance sector, said Amitabh Jain, COO, Star Health Insurance.

 Star Health Insurance, India’s largest retail health insurer, had introduced a health insurance plan exclusively designed for senior citizens 16 years ago. 

“Over the years, Star Health Insurance has provided insurance to senior citizens, emphasizing their healthcare and well-being requirements with a practical approach. Acknowledging the vulnerability of this demographic to illnesses, the proactive implementation of preventive healthcare measures including telemedicine and regular health check ups has effectively contributed to sustaining the health of senior citizens,’‘ he added. 

Pooja Yadav, chief product officer, Zuno General Insurance. said the move could bring about a transformative change in health cover.

“Overall, it will foster an inclusive healthcare ecosystem that safeguards individuals from unforeseen medical expenses, embracing everyone from children to seniors. We already have no age-based entry barrier for retail health products like HealthPlus and Top-Up since its launch.’’ Yadav said. 

Health segment accounts for a lion’s share in over all non-life insurance market. It a 38 per cent in the year ended March 31, 2024 with 20 per cent growth. Health insurance premium was at ₹1.09 lakh crore in FY24 out of a total non-life premium of ₹2.89 lakh crore, as per industry data.

comment COMMENT NOW