Insurers Adapt Policies as Air Pollution Drives Health Claims Spike in India

According to the latest industry data, India's health insurers are grappling with a steady increase in hospitalization claims linked to respiratory and cardiac illnesses, which they attribute to worsening air pollution across major cities. This trend has prompted insurers to factor environmental risks more prominently into their product design and pricing strategies.

Insurers report a marked seasonal pattern, with a notable spike in claims for conditions like asthma, COPD, and bronchitis during high-pollution months, especially in northern India. While these cases are typically classified under standard respiratory categories, insurers are now more actively incorporating pollution as a risk factor into their actuarial models and premium calculations.

In response, the industry is exploring specialized products, riders, and preventive health features to address climate-linked and pollution-related health risks. Some companies have already introduced add-ons for diagnostic check-ups and outpatient visits related to pollution-triggered illnesses, and more such offerings are expected to emerge as awareness increases.

Insurers are also enhancing their wellness programs, incorporating features like lung function tests and air quality-linked incentives, in line with the industry regulator's guidelines. Experts advise policyholders with pre-existing respiratory or cardiac conditions to ensure full disclosure, maintain policy continuity, and opt for comprehensive coverage in high-pollution regions.