The real estate business is one of the most profitable ventures. You can earn high revenues through commissions from closing deals. The real estate business was quite popular among new entrepreneurs until the onset of the COVID-19 pandemic. Dealings in residential and commercial properties almost came to a standstill due to a series of lockdowns, a weak economy, and the financial stress on the majority of the population. However, during this period, the health insurance sector recorded steep growth due to the increased demand for healthcare facilities, a rise in hospitalization costs, and unexpected medical situations demanding immediate attention.
Other factors that contributed to the growing demand for health insurance include:
Changes in the healthcare industry
The last two years have witnessed major changes in the health insurance sector; one of them is that many people have finally understood the importance of having robust health insurance. The pandemic taught us that a medical crisis can occur anytime, and not being prepared can even cost lives.
Premiums from both offline and online health insurance purchases contributed to the growth of the health insurance sector, despite lockdowns. Some health insurers recorded a growth of approximately 66.6% in the gross premium in 2021. The sector also witnessed some restructuring focusing on health insurance products.
Changes in people’s mindset
According to experts, the growth is here to stay as consumers have become conscious of health insurance benefits. People no more seek just a mediclaim policy but are opting for comprehensive health insurance policies for extensive coverage. Comprehensive policy covers many diseases, including some pre-existing conditions and lifestyle diseases.
New health insurance products on offer
To cater to the need of existing and new customers, the industry may design new products or customize the active ones. There is a huge scope for this as the industry still deals with mostly standard health policies. For example, they may design new products for senior citizens and children. Once these products are ready, you can have a lucrative business plan that deals with diverse health insurance products at affordable premiums. You can calculate health insurance premiums with a health insurance premium calculator.
Digital platform for healthcare products
Online transactions are cheaper, time-saving, and convenient compared to offline purchases. Most insurers provide these facilities, and the work is on introducing technologies that would better integrate all the processes.
This would lead to fast processing of health insurance claims and their tracking, access to new products online, and improvement in the overall experience of the buyers. For the insurers, it would bring down the costs and provide them with better data handling and data control for operating their organizations. It would be beneficial for both insurers and the insured.
Bringing the uninsured under coverage
With the Ayushman Bharat–Pradhan Mantri Jan Arogya Yojana (AB-PMJAY), initiated by the Central government and several state governments, efforts are on to bring the uninsured under health insurance coverage. In addition, several nationalized and private players are also trying to capture the vast, untapped, and uninsured population—primarily self-employed individuals in rural areas. If you can tie up with the insurers, you can have a promising business by bringing the uninsured into the fold of health insurance.
Insurers are always on the lookout for innovative and newer distribution channels to reach out to potential customers. This also helps offer products of their choice to customers with varying needs. The digital channel is one such innovation that helps reach out to a larger consumer base, particularly to the younger tech-savvy generation. Insurers have also developed mobile apps and upgraded their websites with features to appeal to millennials.
A health insurance business is profitable in the current scenario as there is a high demand for varied insurance products. Plus, a huge chunk of the population in India is uninsured. You can have a continuous source of income at an increasing rate if you can reach out to people interested in health plans. Create an environment of mutual benefits and see your revenues grow over time.