Seasonal Outbreak Insurance – Is It the Next Big Thing?

What is Seasonal Outbreak Insurance?

Seasonal outbreak insurance is a short-term policy with specially designed coverage against the health risk of seasonal illnesses like dengue, malaria, typhoid, respiratory outbreaks, chikungunya, etc. The policy provides coverage for a short period, such as for the monsoon and winter. It generally covers the cost of hospitalisation, outpatient expenses, diagnostic test costs and more arising from seasonal epidemics. The following illnesses are usually covered under seasonal outbreak insurance:

1. Water-borne diseases such as leptospirosis, gastroenteritis, typhoid, cholera, hepatitis A, and more
2. Vector-borne diseases such as malaria, dengue, chikungunya, yellow fever, Zika virus fever and more
3. Air-borne diseases such as bronchitis, pneumonia, influenza and more.

How Does Seasonal Outbreak Insurance Work?

The seasonal outbreak insurance is a short-term policy that provides niche or disease-specific coverage. Many insurance companies in India are offering disease-specific and season-specific coverage. The premium and coverage are decided based on the type of policy purchased. Seasonal outbreak insurance coverage can come in two types: fixed benefit coverage and parametric or trigger-based coverage.

• Fixed benefit coverage: This refers to the payment of a fixed amount (say INR 30,000 or INR 50,000) based on the lab-confirmed diagnosis of a seasonal illness. This fixed amount can be utilised for non-medical expenses (transport, income loss, disinfection, fumigation), specifically when the hospitalisation charges are taken care of by the standard health insurance plan.
• Trigger-based coverage: In parametric or trigger-based coverage, the payout can be linked to public health data. For example, payout for dengue can be based on municipal case counts crossing the set threshold for the area.

Why Seasonal Outbreak Insurance is the Next Big Thing in India?

India experiences two seasonal epidemics wave in a year – monsoon peak and winter peak, witnessing a rise in seasonal influenza and respiratory illnesses, vector-borne and water-borne diseases. That means, Indian households, schools, housing societies and small businesses experience recurring and predictable health scares coming with cost shocks from doctor consultation, diagnostic tests, hospitalisation and missed work days. Having health insurance, specifically for seasonal outbreaks, is thus an important necessity in India. Here are a few growth drivers that make seasonal outbreak coverage a new era in risk protection:

Increased awareness and demand

With the media coverage and government publishing the health bulletin with case counts during the seasonal outbreak for dengue, malaria, chikungunya, etc., there is increased awareness among the public. The COVID-19 outbreak and the pandemic have also changed the way in which Indian households perceive the health scare and the associated financial impact. Social media conversations over the seasonal outbreaks of illnesses have also increased demand for short-term, easy-to-understand seasonal coverage health insurance policies.

Healthcare inflation

India has the highest healthcare inflation rate in Asia, standing at about 12% to 14% per year. With the medical inflation outpacing the general inflation, the treatment cost for seasonal illnesses also increases year on year. Short hospital stays can dent a hole in the pocket of the Indian middle class. Without a comprehensive health insurance coverage, seasonal illness-related complications can erode the savings of middle-class Indian families. Hence, low-cost short-period policies like seasonal outbreak insurance are gaining traction as they provide the much-needed financial buffer during the bimodal peaks.

Innovation and regulatory push

The rise of digital distribution platforms, web aggregators and InsureTech companies has boosted innovation in the insurance industry. These players in the insurance market are making disease-specific insurance policies, seasonal outbreak insurance policies and all accessible for young and tech-savvy customers in India. Insurance Regulatory and Development Authority of India (IRDAI), the insurance regulator, has been encouraging innovative products like bite-sized covers ( example: Mashak Rakshak policy for vector-borne illnesses) by creating a ready regulatory framework for insurance companies to experiment.

Low penetration

Insurance penetration in India is significantly low, specifically in rural India. Only 30% to 40% of the population has health coverage, mainly through government health insurance schemes. An underinsured Indian household lacks comprehensive coverage to fight through the financial impact of medical emergencies. In such scenarios, seasonal outbreak insurance that generally comes with a low premium for short-term coverage can be a lucrative option for people to protect them against seasonal epidemics.

At Jio Insurance Broking, you can explore various seasonal outbreak insurance policies offered by different health insurance companies. You can compare them based on the policy coverage, benefits, suitability to your needs and affordability to make the best choice.

Conclusion

To conclude, seasonal outbreak insurance policies offered by many Indian insurance companies can provide needed financial support during the monsoon and winter peaks. Niche and targeted cover, quick payouts, and the ability to include non-medical costs can make seasonal outbreak insurance a game-changer for public health.