Insuring the future

Context:

The Insurance Regulatory and Development Authority of India (IRDAI) has directed insurance providers to extend health insurance coverage to senior citizens above the age of 65, acknowledging demographic shifts and the need for broader access to health insurance.

Demographic Changes and Health Insurance Access

• Necessity due to demography: India's population, estimated to rival China's, is undergoing significant demographic shifts, with a growing senior population projected.
• Concerning healthcare: Access to health care, affordable medicine, and caregiving infrastructure for seniors is a concern in both developed and developing countries.
• Addressing exclusion: The IRDAI's directive aims to address the exclusion of senior citizens from health insurance coverage, acknowledging the need for broader access to health care.

Challenges of Affordability and Access

• Affordability challenges: Health insurance policies become increasingly expensive with age, posing affordability challenges for senior citizens.
• Exclusion from insurance option: Existing family floater plans cater to a small percentage of India's economic elite, leaving many seniors without affordable health insurance options.
• Merely broadening eligibility without addressing affordability may result in the proliferation of unaffordable health insurance policies.

Necessity for Upgraded Healthcare Infrastructure

• Shift from traditional caregiving: The demographic dividend in India's workforce necessitates a shift away from traditional caregiving structures for the aged.
• Investment in infrastructure: Extending health insurance coverage must be accompanied by substantial investments in affordable healthcare infrastructure.
• Need to upgrade healthcare: Lessons from southern Indian states underscore the importance of upgrading healthcare to meet the needs of an aging population.