The Indian health insurance market is undergoing a significant transformation, with the phygital model emerging as the new norm. According to a report by The Economic Times, customers are increasingly researching and applying for health insurance online, but still rely on human advisors for critical decisions and claims. This phygital approach is being driven by tech-enabled advisors who are using digital tools and local support to bridge the access gap in health insurance, especially in non-metro areas.
Gurleen Kaur Tikku, a Delhi-based advisor, attests to the changing role of advisors in the health insurance sector. “For me, my workday now includes a digital dashboard and a smartphone as much as a diary and a pen,” she says. Tikku uses digital tools to generate real-time quotes and show clients on-screen how adding a deductible or a Super Top-up can alter their premium and protection. She also creates short explainer videos or voice notes in local languages to help clients understand complex concepts such as deductibles, top-ups, and waiting periods.
The phygital model is particularly relevant in non-metro areas, where access to health insurance is limited. In these areas, tech-enabled advisors are using digital tools to reach clients and provide them with personalized support. For example, an advisor might record a two-minute audio clip comparing an individual plan and a family floater using familiar household examples, sending it to a family group before their in-person meeting.
Punita Paul, a Delhi-based customer, recalls how she was initially confused about the differences between critical and serious illnesses. She had difficulty understanding the nuances of health insurance plans online, but eventually found an advisor who was able to clarify the differences. “Even with so much information online, it is still reassuring to hear from someone in the industry,” she says.
The use of digital tools and local support is not only helping to increase access to health insurance but also improving the overall customer experience. As Tikku notes, “The enablers and instant solution give instant gratification, which leads to faster decision-making.” This phygital approach is likely to continue shaping the health insurance sector in India, with tech-enabled advisors playing a crucial role in bridging the access gap and providing personalized support to clients.
In terms of numbers, the Indian health insurance market is expected to grow significantly in the coming years. According to a report by the Insurance Regulatory and Development Authority of India (IRDAI), the health insurance sector grew by 17% in 2022, with the total premium collected increasing to ₹53,000 crore. The report also notes that the number of health insurance policies sold increased by 15% in 2022, with the total number of policies sold reaching 45.5 million.
The phygital model is also being driven by the increasing use of digital platforms and mobile apps in the health insurance sector. As per a report by the Internet and Mobile Association of India (IAMAI), the number of Indians using digital platforms for health insurance increased by 25% in 2022, with the total number of users reaching 15 million. The report also notes that the average premium paid by digital users is higher than that paid by offline users, indicating a greater willingness to pay for health insurance among digital users.
Overall, the phygital model is transforming the health insurance sector in India, with tech-enabled advisors playing a crucial role in bridging the access gap and providing personalized support to clients. As the sector continues to grow and evolve, it is likely that the phygital approach will become increasingly important, with digital tools and local support becoming essential components of the health insurance ecosystem.
For more information on the Indian health insurance sector, readers can visit our health insurance category, which provides news, updates, and analysis on the latest developments in the sector.
