India Health Insurance Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | INR 0.91 Trillion |
| Market Size (2029) | INR 1.5 Trillion |
| CAGR (2024 - 2029) | 10.60 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
India Health Insurance Market Analysis
The India Health And Medical Insurance Market size is estimated at INR 0.91 trillion in 2024, and is expected to reach INR 1.5 trillion by 2029, growing at a CAGR of 10.60% during the forecast period (2024-2029).
Health and Medical Insurance is a type of health coverage that pays for medical expenses incurred because of an illness. These costs could be related to hospitalization, medication, or doctor consultation fees. The increasing cost of quality healthcare and increased demand for healthcare coverage due to growing income levels, rising life expectancy, and the epidemiological shift toward noncommunicable diseases have made health and medical coverage mandatory in India.
Health insurance is a major contributor to the expansion of the general insurance market in India. It contributes to approximately 29% of total general insurance premium income in India. The expansion of this sector is significant in terms of the overall expansion of the general insurance industry. The insurance market is expanding due to significant government initiatives, strong democratic factors, a favorable regulatory framework, growing partnerships, product innovations, and dynamic distribution networks. Health insurance is a rapidly growing sector of the Indian economy. For instance, as per the India Brand Equity Foundation, in the fiscal year 2020, there was an increase in health insurance coverage. In Bihar, Assam, and Sikkim, the proportion of households with health insurance increased by 89% in FY20 compared to FY16.
While the global pandemic had an impact on many industries, COVID-19 spurred growth in the Indian insurance sector. The health and medical insurance industry of India demonstrated its importance by offering COVID-19-specific health insurance plans and providing assistance to policyholders. Health insurance plan sales increased amid COVID-19, which benefited both customers and insurers. Health insurance providers with exclusive facilities and benefits were in higher demand. For instance, the Insurance Regulatory and Development Authority of India (IRDAI) mandated and instructed health insurers to include COVID-19 coverage in all policyholders' regular health insurance plans.
Health insurance is an emerging insurance sector in India, following life and automobile insurance. The rise of the middle class, higher hospitalization costs, expensive health care, digitization, and an increase in awareness are some important drivers for the growth of India's health insurance market. The health insurance industry is at an emerging stage. There exists a huge potential for growth and penetration of health insurance among a larger population. Additionally, there are both opportunities and restraints in the marketing and distribution of health insurance products in India.
India Health Insurance Market Trends
Government Subsidized Health Insurance Schemes is Boosting the Sales of Health and Medical Insurance Policies
India's health and medical insurance market is growing because of big government programs, strong democratic factors, a good regulatory environment, steadily more partnerships, new products, and strong distribution channels.
Government programs and financial inclusion initiatives are likely to have aided in driving adoption and penetration across all segments. AB PM-JAY is an entitlement-based scheme funded entirely by the government under Ayushman Bharat. It is the world's largest health assurance scheme, aiming to provide INR 500,000 ($6,900) per family per year for secondary and tertiary care hospitalization to over 107 million vulnerable families (approximately 500 million beneficiaries). Nearly 514 million people in India were covered by health insurance schemes in the fiscal year 2021. The majority of these people were covered by government-sponsored health insurance plans, while the minority were covered by individual insurance plans.
Focus Towards Growth of General Insurance is Driving the Growth of the Industry
According to the Insurance Regulatory and Development Authority of India (IRDAI), the penetration of general insurance in FY 2021 was nearly 1%. This is especially low in India, owing to the lack of awareness within the population. However, the IRDAI as announced aspirational targets to reach a penetration of 2.52% by 2027. Further, the IRDAI has given growth targets for next five years for non-insurance companies such as ICICI Lombard, Bajaj Allianz General, HDFC Ergo, and others. Additionally, it has also asked public sector insurers to increase premiums by 25% annually, and private sector insurers to surge the premiums by 40% each year. This will assist the general insurance sector to gain a significant growth in the overall insurance industry in India.
India Health Insurance Industry Overview
The Health and Medical Insurance Market is moderately consolidated. The increasing number of new players in the market is expected to increase the competition levels for the established market players. The rapid adoption of advanced technology for improved healthcare, as well as the introduction of new policies, are significant factors influencing the competitive nature. Furthermore, to gain market share, players are employing various strategies such as expansion, merger and acquisition, partnership, and collaboration.Some of the key players operating in the market are Star Health, Aditya Birla, Niva Bupa Health Insurance (Formerly known as Max Bupa Health Insurance), Bajaj Allianz Health Insurance, Bharti AXA Life Insurance, Reliance Health Insurance, and others.
India Health Insurance Market Leaders
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Star Health and Allied Insurance Co Ltd
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Aditya Birla Group
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Niva Bupa Health Insurance Company Limited
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Bajaj Allianz Health Insurance
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Bharti AXA Life Insurance
*Disclaimer: Major Players sorted in no particular order
India Health Insurance Market News
- August 2022 : the boards of Aditya Birla Capital Ltd and its subsidiary Aditya Birla Health Insurance Co. Ltd approved an investment of Rs 665 crores by Abu Dhabi Investment Authority in the health insurer on Friday (ADIA). The funds will be used to fuel the growth of the health insurer.
- July 2022 : Bajaj Allianz Life Insurance formed a strategic alliance with City Union Bank, one of India's oldest private sector banks. This collaboration will enable the private life insurer to provide a diverse range of life insurance solutions to the bank's existing and prospective customers across its 727 branches.
India Health Insurance Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS AND INSIGHTS
4.1 Market Overview
4.2 Market Drivers
4.3 Market Restraints
4.4 Industry Attractiveness - Porters' Five Forces Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitutes
4.4.5 Intensity of Competitive Rivalry
4.5 Insights of Technology Innovations in the Market
4.6 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Type of Insurance Provider
5.1.1 Public Sector Insurers
5.1.2 Private Sector Insurers
5.1.3 Standalone Health Insurance Companies
5.2 By Type of Customer
5.2.1 Non-Corporate
5.2.2 Corporate
5.3 By Type of Coverage
5.3.1 Individual Insurance Coverage
5.3.2 Family or Floater (Group)Insurance Coverage
5.4 By Product Type
5.4.1 Disease- specific Insurance
5.4.2 General Insurance
5.5 By Demographics
5.5.1 Minors
5.5.2 Adults
5.5.3 Senior Citizens
5.6 By Distribution Channel
5.6.1 Direct to Customers
5.6.2 Brokers
5.6.3 Individual Agents
5.6.4 Corporate Agents
5.6.5 Online
5.6.6 Bancassurance
5.6.7 Other Distribution Channels
6. COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Star Health and Allied Insurance Co Ltd
6.2.2 Aditya Birla Group
6.2.3 Niva Bupa Health Insurance Company Limited
6.2.4 Bajaj Allianz Health Insurance
6.2.5 Bharti AXA Life Insurance
6.2.6 Religare
6.2.7 HDFC Ergo
6.2.8 Oriental Insurance
6.2.9 ICICI Lombard
6.2.10 United India Insurance
6.2.11 Reliance Health Insurance
6.2.12 New India Assurance
6.2.13 National Assurance
6.2.14 Cigna TTK*
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER AND ABOUT US
India Health Insurance Industry Segmentation
A health and medical insurance plan is one that pays for or shares the costs of medical care. These plans are classified as commercial health insurance because they are provided by government, private, and stand-alone health insurance companies. The report also covers a complete background analysis of the India Health and Medical Insurance market, including the assessment of the economy and the contribution of the sectors in the economy, a market overview of key segments and emerging trends in the market segments, market dynamics, insights, and key statistics. The India Health and Medical Insurance market is segmented by Type of Insurance Provider (Public, Private, Standalone Health Insurers), Type of Customer (Corporate and Non-corporate, Type of Coverage (Individual, Family or Floater), Product Type (Disease Specific and General), Demographics (Minors, Adults, Senior Citizens), and by Distribution Channel (Direct to Customers, Brokers, Individual Agents, Corporate Agents, Online, Bancassurance, and Other Distribution Channels). The report offers market size and forecasts for India Health and Medical Insurance Market in value (USD Million) for all the above segments.
| By Type of Insurance Provider | |
| Public Sector Insurers | |
| Private Sector Insurers | |
| Standalone Health Insurance Companies |
| By Type of Customer | |
| Non-Corporate | |
| Corporate |
| By Type of Coverage | |
| Individual Insurance Coverage | |
| Family or Floater (Group)Insurance Coverage |
| By Product Type | |
| Disease- specific Insurance | |
| General Insurance |
| By Demographics | |
| Minors | |
| Adults | |
| Senior Citizens |
| By Distribution Channel | |
| Direct to Customers | |
| Brokers | |
| Individual Agents | |
| Corporate Agents | |
| Online | |
| Bancassurance | |
| Other Distribution Channels |
India Health Insurance Market Research FAQs
How big is the India Health and Medical Insurance Market?
The India Health and Medical Insurance Market size is expected to reach INR 0.91 trillion in 2024 and grow at a CAGR of 10.60% to reach INR 1.5 trillion by 2029.
What is the current India Health and Medical Insurance Market size?
In 2024, the India Health and Medical Insurance Market size is expected to reach INR 0.91 trillion.
Who are the key players in India Health and Medical Insurance Market?
Star Health and Allied Insurance Co Ltd, Aditya Birla Group, Niva Bupa Health Insurance Company Limited, Bajaj Allianz Health Insurance and Bharti AXA Life Insurance are the major companies operating in the India Health and Medical Insurance Market.
What years does this India Health and Medical Insurance Market cover, and what was the market size in 2023?
In 2023, the India Health and Medical Insurance Market size was estimated at INR 0.81 trillion. The report covers the India Health and Medical Insurance Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Health and Medical Insurance Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Which segment accounts for the largest share of the Indian Health Insurance Market?
The Individual health insurance segment accounts for the largest share of the Indian Health Insurance Market.
What are the major trends in the India Health Insurance Market?
The major trends in the India Health Insurance Market are a) Focus on technology adoption for improved healthcare delivery b) Introduction of new health insurance products c) Increasing competition among insurance providers
Health Insurance in India Industry Report
The health insurance market in India is rapidly expanding, driven by the escalating cost of quality healthcare and the increasing demand for healthcare insurance. The growth of this sector, which offers medical coverage for costs such as hospitalization and medication, is fueled by government initiatives, product innovations, and a rise in awareness among the emerging middle class. The market's segmentation includes the type of insurance provider, customer, health coverage, product type, demographics, and distribution channel.
The India health insurance market, inclusive of numerous medical insurance companies, is witnessing significant growth, driven by factors such as rising healthcare costs, increasing income levels, longer life expectancies, and a shift towards non-communicable diseases. The market, which is expanding due to strong democratic factors, growing partnerships, dynamic distribution networks, and significant government initiatives, is dominated by the public sector insurers segment, which includes some of the top health insurance companies in India. However, the private sector insurers segment is expected to grow at a lucrative rate.
The market is also seeing new trends such as product innovation, multi-distribution, better claims management, and regulatory developments. The health and medical insurance market in India, which offers various types of medical policies, is expected to reach significant growth. This growth is driven by the increasing cost of quality healthcare, increased demand for healthcare coverage, and the epidemiological shift toward non-communicable diseases. The health insurance sector contributes significantly to the expansion of the general insurance market in India.
This analysis, provided by Mordor Intelligenceā¢ Industry Reports, includes a market forecast outlook and historical overview of Health Insurance in India, offering insights into market share, market size, and revenue growth rate. A sample of this industry analysis is available as a free report PDF download.
