Introduction: The Dual Challenge of Diabetes and Insurance in India
India’s diabetes epidemic is a ticking time bomb. With over 77 million diabetics—a number projected to rise to 134 million by 2045—the condition is a leading cause of cardiovascular diseases, kidney failure, and other costly complications. For insurers, this translates to soaring health claims and long-term financial liabilities. Meanwhile, millions of diabetic’s face exclusion from affordable health and life insurance due to outdated underwriting models that label them “high-risk” without considering their efforts to manage the disease.
The solution lies at the intersection of healthtech and insurtech. Innovative diabetes management platforms offer insurers a data-driven pathway to reduce claims, design inclusive products, and foster healthier outcomes. This article explores how technology can transform insurance from a reactive safety net into a proactive partner in diabetes care.
The Diabetes Burden: A Looming Crisis for Insurers
Diabetes-related complications account for a significant share of health insurance claims in India. Poorly managed blood sugar levels lead to hospitalizations, surgeries, and chronic treatments, driving up costs for insurers. Traditional insurance models exacerbate the problem by:
Penalizing Proactive Management: Diabetics who actively control their condition are often lumped into the same high-risk category as those who don’t, facing steep premiums or coverage denials.
Ignoring Real -Time Data: Underwriters rely on static metrics like age or historical HbA1c levels, missing opportunities to reward policyholders for improving their health.
This approach is financially unsustainable for insurers and ethically untenable for a society striving for health equity.
The Role of Healthtech in Bridging Diabetes Care and Insurance Innovation
Tech-driven platforms empower diabetics to monitor and manage their condition through connected devices, AI-powered insights, and personalized coaching. For insurers, this real-time data is a goldmine to reduce risk and redesign products. Here’s how:
1. Proactive Diabetes Management to Reduce Claims
Continuous Monitoring: Connected glucometers and apps track blood glucose levels in real time. Insurers can identify high-risk policyholders early and intervene with targeted support (e.g., free consultations, medication reminders), preventing costly complications.
Behavioural Nudges: Personalized coaching and dietary plans improve adherence to treatment, reducing the likelihood of emergencies.
Predictive Analytics: AI forecasts complications like retinopathy or neuropathy, enabling insurers to prioritize high-risk cases.
2. Data-Driven Insurance Products: Fair Pricing for Managed Diabetics
The future of insurance lies in dynamic, outcome-based models. Healthtech data allows insurers to:
Segment Risk Precisely: Differentiate between policyholders with controlled vs. uncontrolled diabetes using metrics like daily glucose trends, HbA1c reduction, and engagement with coaching.
Eliminate Unfair Premium Loading: Offer lower premiums or waive loadings for diabetics who demonstrate consistent health improvements. For example, a user maintaining HbA1c <7% could qualify for standard rates.
Design Life Insurance for Diabetics: Refine mortality risk models using real-world data, enabling term life policies at competitive rates for well-managed individuals.
Design Health Insurance for Diabetics: Develop tailored health insurance plans that cover diabetes-related expenses, including medication, diagnostics, and lifestyle management programs. These plans can include benefits such as unlimited teleconsultations, customized diet plans, and emergency medical support, ensuring comprehensive coverage for diabetics while optimizing insurer costs.
3. Incentivizing Healthier Behaviours
Gamified Rewards: Policyholders earn discounts, cashback, or coverage upgrades for achieving milestones like weight loss or medication adherence.
Preventive Care Bundles: Integrate services such as annual screenings and dietician access into insurance plans, creating value-added policies that attract health-conscious consumers.
Case Study: A Blueprint for Success
Imagine an insurer partners with BeatO a diabetes management company to launch a “Diabetes Care” policy
Policyholders receive a BeatO-connected glucometer, app access, and coaching.
Insurers monitor real-time data, offering premium discounts for stable glucose levels and HbA1c improvements.
Results: Over 12 months, claims for diabetes complications could drop by 30%, while customer retention rises due to perceived value.
This model isn’t hypothetical—it’s a scalable reality.
Regulatory Tailwinds and Collaborative Opportunities
India’s regulatory environment is ripe for innovation:
IRDAI’s “Insurance for All by 2047”: Encourages inclusive products tailored to underserved groups, including diabetics.
National Digital Health Mission (NDHM): Facilitates secure data sharing between healthtech platforms and insurers.
Sandbox Frameworks: Allow insurers to pilot outcome-based pricing models with healthtech data.
The Win-Win-Win: Insurers, Policyholders, and Society
1. Insurers gain a competitive edge through:
Lower claims costs and expanded market share (77 million potential customers).
Enhanced customer loyalty via personalized engagement.
2. Policyholders benefit from:
Affordable premiums and access to life-changing care.
Empowerment to take control of their health.
3. Society wins by reducing the ₹1.5 trillion annual economic burden of diabetes complications.
Redefining Insurance as a Force for Health Equity
The collaboration between healthtech and insurers isn’t just about mitigating risk—it’s about rewriting the narrative around chronic disease management. By leveraging real-time data, insurers can transition from gatekeepers of financial security to partners in health.
Pilot Data-Driven Products: Partner with healthtech platforms like BeatO to test outcome-based policies.
Advocate for Regulatory Modernization: Push for frameworks that support dynamic pricing and health data integration.
Educate Consumers: Highlight the link between proactive health management and insurance affordability.
The tools exist. The need is urgent. Together, we can build an insurance ecosystem where diabetes is no longer a sentence of financial exclusion, but a condition managed with dignity and hope.
About BeatO
BeatO is India’s leading digital diabetes care platform, using connected devices, AI, and expert coaching to empower millions to live healthier lives.
Author: Sangram Singh Rawat, Advisor Insurance & B2B business, BeatO
Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of IIA and IIA does not assume any responsibility or liability for the same.