India Health Insurance Market on an Impressive Growth Spree: Projected to Grow at a CAGR of 10.1% by 2027
Published | 01 January 2022
Health insurance is emerging as a powerful financial management tool for Indian people seeking health care. Increasing burden of various health issues and chronic medical conditions among all age groups in the country are driving India’s health insurance industry. To know more about the latest trends and factors driving the India Health Insurance Market…
A recent study, conducted by the strategic consulting and market research firm BlueWeave Consulting, revealed that the India health insurance market is estimated to grow at a CAGR of 10.1% during the forecast period of 2021-2027. India health insurance market is growing at a high rate because of the changing lifestyle and the increasing burden of various health issues and chronic medical conditions among all age groups in the country. In addition, the government is taking various steps to boost the adoption of health insurance among the general public. In accordance with the recommendations by NITI Aayog, the government can gain back the trust of the missing middle class in health insurance by strengthening regulatory mechanisms. Furthermore, the expanding private-public infrastructure of the health insurance sector in India and the availability of low-cost policies are significantly driving the growth of the market.
Tax Benefits of Health Insurance is Propelling the Market Growth
The tax reforms in India provide several tax benefits and deductions on health insurance to boost the awareness and accessibility to these policies among the masses. For instance, under Section 80D of the Income Tax Act 1961, the health insurance premiums paid by individuals to buy policies for themselves and their parents are tax-deductible. The purchase of health insurance coverage for oneself, spouse, and children can save up to Rs. 25,000 (approx USD 328) as tax deductions.
Increasing Adoption of Insurtech in Health Insurance is Powering the Market
India is emerging as the most prominent and attractive market for the growth of Insurtech. The adoption of Insurtech is anticipated to provide lucrative growth opportunities to the health insurance market as well. Through the application of advanced technologies, such as cloud computing, AI, IoT, etc., health insurance providers can focus on improving user experience and overall customer engagements. To achieve this, health insurance providers are establishing partnerships with Insurtech companies as well. For instance, In August 2021, ICICI Prudential Life Insurance tied up with the National Payments Corporation of India (NPCI) to provide a unified payments interface autopay.
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India Health Insurance Market - By Demographic
Based on demographics, the India health insurance market is segmented into minors, adults, and senior citizens. Among these, the senior citizens hold the largest share in the market. The increasing geriatric population aged between 65 and 80 years is most vulnerable to medical emergencies, so health insurance is of the greatest importance for providing the necessary financial support. However, the adult segment is expected to grow at a faster rate due to the increased awareness of health insurance among this demographic.
India Health Insurance Market - Regional Insights
Geographically, the India health insurance market is segmented into North India, South India, West India, East India. Western India dominates the health insurance market. However, South India is also emerging with great growth potential in the health insurance market. States like Andhra Pradesh, Tamil Nadu, Telangana, etc., are leading the market with increasing health insurance penetration. The growing preference for private hospitals and structured public healthcare systems in these regions plays a crucial role in propelling the overall market growth. Furthermore, the presence of significant health insurance providers such as Max Bupa, Care Health, Manipal Cigna, etc., is also driving the market growth.
Impact of COVID-19 on India Health Insurance Market
India health insurance witnessed tremendous growth after the unprecedented COVID-19 pandemic outbreak. Health insurance companies in India rapidly switched to Insurtech solutions to improve policy accessibility for the customers without any hassles. Additionally, the companies digitized their offering for boosting the purchase and sales of health insurance policies through using the official website of the insurer. Furthermore, the significant surge in the demand for Coronavirus Health Insurance to avail financial support during COVID-19 treatment also played a crucial factor in driving the India health insurance market growth.
India Health Insurance Market - Competitive Landscape
The leading players in the India health insurance market are National Insurance Co. Ltd., Go Digit General Insurance Ltd., Bajaj Allianz General Insurance Co. Ltd., Cholamandalam MS General Insurance Co. Ltd., Bharti AXA General Insurance Co. Ltd., HDFC ERGO General Insurance Co. Ltd., Future Generali India Insurance Co. Ltd., The New India Assurance Co. Ltd., SBI General Insurance Co. Ltd., Reliance General Insurance Co. Ltd., and other prominent players.
The increasing geriatric population aged between 65 and 80 years is most vulnerable to medical emergencies, so health insurance is of the greatest importance for providing the necessary financial support. However, the adult segment is expected to grow at a faster rate due to the increased awareness of health insurance among this demographic.
The market is highly consolidated and dominated by established players, such as Bharti AXA, SBI General Insurance, HDFC ERGO, etc., who enjoy a strong consumer base due to their strong industry position. Insurance companies offer a variety of policies based on illnesses, age demographics, finances, etc., to cover a larger share of the market. In addition, they utilize social media influence and advertising to create awareness of the benefits of health insurance. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the India health insurance market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends of the India health insurance market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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- India Health Insurance Market, By Plan Type (Medical Insurance, Critical Illness Insurance, Family Floater Health Insurance, Others), By Demographics (Minor, Adults, Senior Citizen), By Provider (Preferred Provider Organizations (PPOs), Point of Service (POS), Health Maintenance Organizations (HMOs), Exclusive Provider Organizations [EPOs]), By Region (North India, South India, West India, East India), Trend Analysis, Competitive Market Share & Forecast, 2017-2027
Publish Date: January 2022
India health insurance market is growing at a high rate because of the rising prevalence of chronic diseases and increasing awareness among the general public regarding the benefits of health insurance. Additionally, favorable government initiatives such as Ayushmann Bharat that provide health insurance coverage, also favors the market’s growth.
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