General insurers gearing up to bring new products for senior citizens following removal of age cap
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 eect 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.
The competitive market dynamics spurred by this change may result in improved oerings 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.
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“However, insurers must adapt underwriting practices to manage increased risks associated with insuring older demographics eectively. 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.
Pooja Yadav, Chief Product Ocer, Zuno General Insurance, said the move could bring about a transformative change in health cover.
Health segment accounts for a lion’s share in over all non-life insurance market. Health insurance premium was at ₹1.09 lakh crore in FY24 out of a total non-life premium of ₹2.89 lakh crore, per industry data.