India Health And Medical Insurance Market Size (2024 - 2029)

The health insurance market size in India is experiencing significant growth, driven by factors such as increasing healthcare costs, rising income levels, and a shift towards noncommunicable diseases. This sector is a crucial part of the general insurance market, contributing substantially to its overall expansion. Government initiatives, a favorable regulatory environment, and innovations in products and distribution are further propelling the market. The COVID-19 pandemic accelerated the demand for health insurance, highlighting its importance and leading to increased coverage. Despite being an emerging sector, there is substantial potential for further growth and penetration across the country.

Market Size of India Health And Medical Insurance Industry

India Health and Medical Insurance Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.91 Trillion INR
Market Size (2029) USD 1.5 Trillion INR
CAGR (2024 - 2029) 10.60 %
Market Concentration Medium

Major Players

India Health and Medical Insurance Market 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 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
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India Health And Medical Insurance Market Size Summary

The health insurance market in India is experiencing significant growth, driven by increasing healthcare costs, rising income levels, and a shift towards noncommunicable diseases. This sector is a crucial component of the general insurance market, contributing substantially to its overall expansion. The market's growth is supported by government initiatives, a favorable regulatory environment, and the rise of the middle class, which has heightened awareness and demand for health coverage. The COVID-19 pandemic further accelerated this growth, as insurers adapted by offering COVID-19-specific plans, thereby enhancing the importance of health insurance in the country. Despite the challenges, such as low penetration rates and lack of awareness, the market holds substantial potential for expansion, aided by government schemes like AB PM-JAY, which aims to provide comprehensive health coverage to millions of vulnerable families.

The competitive landscape of India's health insurance market is moderately consolidated, with established players facing increased competition from new entrants. Key market participants are leveraging advanced technology and strategic partnerships to enhance their offerings and expand their market share. The Insurance Regulatory and Development Authority of India (IRDAI) is actively promoting growth through aspirational targets and premium adjustments, which are expected to boost the overall insurance sector. Notable companies in the market include Star Health, Aditya Birla, Niva Bupa, and Bajaj Allianz, among others. Recent investments and strategic alliances, such as those by Aditya Birla and Bajaj Allianz, highlight the ongoing efforts to strengthen market positions and drive further growth in the health insurance domain.

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India Health And Medical Insurance Market Size - Table of Contents

  1. 1. MARKET DYNAMICS AND INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

    3. 1.3 Market Restraints

    4. 1.4 Industry Attractiveness - Porters' Five Forces Analysis

      1. 1.4.1 Threat of New Entrants

      2. 1.4.2 Bargaining Power of Buyers

      3. 1.4.3 Bargaining Power of Suppliers

      4. 1.4.4 Threat of Substitutes

      5. 1.4.5 Intensity of Competitive Rivalry

    5. 1.5 Insights of Technology Innovations in the Market

    6. 1.6 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Insurance Provider

      1. 2.1.1 Public Sector Insurers

      2. 2.1.2 Private Sector Insurers

      3. 2.1.3 Standalone Health Insurance Companies

    2. 2.2 By Type of Customer

      1. 2.2.1 Non-Corporate

      2. 2.2.2 Corporate

    3. 2.3 By Type of Coverage

      1. 2.3.1 Individual Insurance Coverage

      2. 2.3.2 Family or Floater (Group)Insurance Coverage

    4. 2.4 By Product Type

      1. 2.4.1 Disease- specific Insurance

      2. 2.4.2 General Insurance

    5. 2.5 By Demographics

      1. 2.5.1 Minors

      2. 2.5.2 Adults

      3. 2.5.3 Senior Citizens

    6. 2.6 By Distribution Channel

      1. 2.6.1 Direct to Customers

      2. 2.6.2 Brokers

      3. 2.6.3 Individual Agents

      4. 2.6.4 Corporate Agents

      5. 2.6.5 Online

      6. 2.6.6 Bancassurance

      7. 2.6.7 Other Distribution Channels

India Health And Medical Insurance Market Size FAQs

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.

In 2024, the India Health and Medical Insurance Market size is expected to reach INR 0.91 trillion.

Health Insurance Market in India Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)