India Health and Medical Insurance Market

The market is segmented by Type of Insurance Provider (Public, Private, Standalone Health Insurers), Type of Scheme (Voluntary, Mandatory, Community-based, Employer based), Type of Coverage (Individual, Family), Term of Coverage(Term, Lifetime), Product Type (Disease, Medical, Income Protection), Demographics (Minors, Adults, Senior Citizens) - Growth, Trends, and Forecast (2019-2024)

Market Snapshot

Market size
Study Period:

2015-2024

Base Year:

2018

CAGR:

19%

Key Players:

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Market Overview

The health insurance industry in India is the fastest growing segment in the non-life insurance sector. The market witnessed a robust double digit growth of 24% in FY 17, with a market share of 24%, in the entire non-life insurance sector. It has been the fastest growing market segment, registering a CAGR of 23%, for the past 10 years. This phenomenal growth may be attributed to the liberalization of the economy and growing general awareness among the public on healthcare.

The health insurance industry is at an embryonic stage, with roughly 25% of the population under its coverage. There exists a huge potential for growth and penetration of health insurance to a larger population. Additionally, there are both opportunities and restraints in the marketing and distribution of health insurance products in India. This report is an attempt to uncover the prospects of successful marketing of such products from the standpoint of insurance marketers, and look at issues impeding the growth of the health insurance market in India.

The launch of National Health Protection Scheme under Ayushman Bharat, in September 2018, in order to provide coverage of up to INR 500,000 (USD 7,723) to more than 100 million vulnerable families, holds heavy expectations, which increases penetration of health insurance in India, from nearly 34% to 50%. Also, about 47.9 million farmers benefitted under Pradhan Mantri Fasal Bima Yojana (PMFBY) in 2017-2018.

Scope of the Report

A complete background analysis of the Indian health and medical insurance market, inclduing the assessment of the economy and contribution of the sectors in the economy, market overview, market size estimation for key segments and emerging trends in the market segments, market dynamics and insights, along with key health statistics, is covered in the report.

By the Type of Insurance Provider
Public Sector Insurers
Private Sector Insurers
Standalone Health Insurance Companies
By Type of Scheme
Voluntary Health Insurance or private for Profit Schemes
Mandatory Health Insurance Schemes or Government-run Schemes(viz. ESIS, CGHS)
Insurance Offered by NGOs/ Community-based Health Insurance
Employer-based Schemes
By Type of Coverage
Individual Insurance Coverage
Family or Floater Insurance Coverage
By Term of Coverage
Term Coverage
Lifetime Coverage
By Product Type
Disease Insurance
Medical Insurance
Income Protection Insurance
By Demographics
Minors
Adults
Senior Citizens

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Key Market Trends

Insights on the Health Insurance Coverage in India

Healthcare providers, such as pharmacies and private hospitals, are the leading health insurance providers, with a coverage share ofmo re than 55%. Health insurance in India is encountered with various drivers and restraints that challenge the market scenario in both short-, as well long-term.

Drivers

  • Increasing awareness in the healthcare sector, owing to the growing healthcare costs
  • Recent restructuring of the general insurance businesses forced the insurance companies to focus on health insurance business
  • Availability of specific products for senior citizens and children popularized health insurance that drives the growth of insurance providers
  • Availability of wide range of products that offer varied health covers, depending on the need for the customers, provides impetus to the sector's growth
  • A higher medical inflation rate of more than 15% has driven the healthcare costs beyond the reach of the needy

Restraints

  • Lack of proper marketing strategies in place to attract the customers. Though there are many channels to market the health insurance products, they have not yet been able to make inroads in small towns

Higher loss ratios in the insurance players, especially in the group health plans, have proven to be challenging to the existing market players.

Trend 1

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Spotlight on the Private Health Insurance Consumption Trends in India

India is experiencing a higher growth in the private health insurance sector, with more and more private health insurers entering into the market to provide quality healthcare to a larger section, with customized healthcare coverage. Indians are increasingly choosing private hospitals over public, due to quality and sophisticated treatment. This serves as a major driver for private insurers to enter into the market and make way for more comprehensive health coverage.

Inflow of huge amount of funds, wide FDI, whose share has gone up from 26% to 49%, recently, and other foreign investments encourage more private insurance companies to make inroads to the health insurance industry in India.

Trend 2

Competitive Landscape

Star health is the market leader in India, in terms of providing quality healthcare through its varied health insurance products, while Max Bupa-held market share amounted to approximately 0.46%. The Insurance Regulatory and Development Authority of India (IRDAI) also plans to issue redesigned initial public offering (IPO) guidelines for insurance companies in India, which are looking to divest equity through the IPO route.

In November 2018, HDFC Ergo is in advanced talks to acquire Apollo Munich Health Insurance, at a value of around INR 2,600 crore (US$ 370.05 million). In August 2018, at a consortium of WestBridge Capital, billionaire investor Mr Rakesh Jhunjunwala announced that it may acquire India’s largest health insurer, Star Health and Allied Insurance, in a deal estimated at around USD 1 billion.

Major Players

  1. Apollo MUNICH
  2. Cigna TTK
  3. Max BUPA
  4. Religare
  5. Star Health and Allied Insurance

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Scope of the Study

    2. 1.2 Key Deliverables of the Study

    3. 1.3 Study Assumptions

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. GOVERNMENT REGULATIONS AND INITIATIVES

    1. 4.1 Brief on IRDAI Regulations and its Effect on Health Insurance Coverage in India

    2. 4.2 Brief on Various Health Insurance Schemes Implemented at Various States in India and their Success

    3. 4.3 Importance of Social health Insurance and its Implication on the Growth of Other Private Players in the Market

    4. 4.4 Insights on the Governmental schemes to provide Universal Health Coverage

  5. 5. INDUSTRY DYNAMICS AND INSIGHTS

    1. 5.1 Current Market Scenario

    2. 5.2 Brief on health insurance premiums and study on the effect of medical trend rate on health plans

    3. 5.3 Market Dynamics

      1. 5.3.1 Drivers

      2. 5.3.2 Restraints

      3. 5.3.3 Opportunities

    4. 5.4 Insights on the Technical Advancements that are Shaping up the Future of Health Insurance Industry in India

    5. 5.5 Industry Attractiveness - Porter's Five Forces Analysis

    6. 5.6 Value Chain/Supply Chain Analysis

  6. 6. MARKET SEGMENTATION

    1. 6.1 By the Type of Insurance Provider

      1. 6.1.1 Public Sector Insurers

      2. 6.1.2 Private Sector Insurers

      3. 6.1.3 Standalone Health Insurance Companies

    2. 6.2 By Type of Scheme

      1. 6.2.1 Voluntary Health Insurance or private for Profit Schemes

      2. 6.2.2 Mandatory Health Insurance Schemes or Government-run Schemes(viz. ESIS, CGHS)

      3. 6.2.3 Insurance Offered by NGOs/ Community-based Health Insurance

      4. 6.2.4 Employer-based Schemes

    3. 6.3 By Type of Coverage

      1. 6.3.1 Individual Insurance Coverage

      2. 6.3.2 Family or Floater Insurance Coverage

    4. 6.4 By Term of Coverage

      1. 6.4.1 Term Coverage

      2. 6.4.2 Lifetime Coverage

    5. 6.5 By Product Type

      1. 6.5.1 Disease Insurance

      2. 6.5.2 Medical Insurance

      3. 6.5.3 Income Protection Insurance

    6. 6.6 By Demographics

      1. 6.6.1 Minors

      2. 6.6.2 Adults

      3. 6.6.3 Senior Citizens

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles, including Mergers, Acquisitions, Joint Ventures, Collaborations, and Agreements)

      1. 7.2.1 Apollo MUNICH

      2. 7.2.2 Cigna TTK

      3. 7.2.3 Max BUPA

      4. 7.2.4 Religare

      5. 7.2.5 Star Health and Allied Insurance Co. Ltd

      6. 7.2.6 Royal Sundaram

      7. 7.2.7 HDFC Ergo

      8. 7.2.8 ICICI Lombard

      9. 7.2.9 Bajaj Allianz

      10. 7.2.10 Oriental Insurance

      11. 7.2.11 United India Insurance

      12. 7.2.12 Reliance Health Insurance

      13. 7.2.13 New India Assurance

      14. 7.2.14 National Assurance

  8. 8. FUTURE GROWTH PROSPECTS OF THE UK HEALTH INSURANCE INDUSTRY

  9. 9. APPENDIX

    1. 9.1 India Public Health Insurance Statistics - SHI

    2. 9.2 Trend Analysis of Per Capita Health Expenditure in India

    3. 9.3 Statistics on Age-wise Health Insurance Coverage

  10. 10. DISCLAIMER AND ABOUT US

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