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Market Entry - Health & Medical Insurance Industry in India: Analysis of Growth, Trends and Progress (2020 - 2025)

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About the Market

The health insurance industry is one of the cardinal components of the global economy by virtue of the amount of revenue it generates, the extent of the global investment, and most prominently the indispensable socio-economic role it plays in securing personal and business risk in the event of unforeseen problems. The key issues in the insurance industry include rising competition, generally soft pricing conditions and tight profit margins. Moreover, the economic turbulence in 2008 has affected employer and corporate health insurance business in the developed countries to some extent, due to cost cutting and lay-off of employees and slowdown of new recruitments. However, at individual levels, the market has not shown any significant slowdown. The health insurance market in developed nations is consolidated by few major players who cover more than 80% of private and public (medicare and medicaid) managed insurance. The cardinal challenges for new capital entrants in the health insurance market include immense competition and rising customer expectations. Success here would be enhanced by expanding digital capabilities, making insurance products easier to understand, compare and purchase. The health insurance market especially in the EU5 countries (U.K., Germany, France, Italy, and Spain) is quite stable owing to a significant contribution from the government. The growth perspective for private players is limited due to universal health coverage plans in these countries. Furthermore, in developing regions the health insurance market for private players continue to challenge as economic recovery throughout the region is overshadowed by low business investment rates and slower industry growth. In some developing nations, the growth prospects remain high due to increasing GDP, rise in disposable income, and growing trend toward health security. Furthermore, the growth of the middle class and high net worth population in these regions presents an immense opportunity for international players to exploit the emerging market. Major players in the market include United Health Group Inc., Allianz SE, AIA Insurance Group, Express Scripts Holding Company, Zurich Insurance Group Ltd., AXA, Aviva Plc, Aetna Inc., International Medical Group, Apollo Munich Health Insurance and Cigna Corporation.

About the Geography

India is the seventh largest country in the world and has the second highest population. It has a parliamentary democratic form of government and has abundant natural resources and sufficient oil reserves. The country has a huge skilled, English-speaking, and inexpensive labor force. Its young population and current economic policies have made it one of the largest recipients of FDI in the world.

Huge investment promises from different countries predict a bright future for India. It has a well-developed administration and an independent judicial system with an ever-growing consumer base. It has a huge pool of hard-working skilled workers in all fields. The government has set up tax and non-tax incentives to establish new industrial entities in specific sectors, which include energy, ports, highways, electronics, and software. The Make in India initiative was launched by the government in 2014 and received an excellent response from the developed nations. The government has also created special areas dedicated to export, called export-processing zones (EPZs) or special economic zones (SEZs), to encourage foreign investment. The strong financial sector and dynamic banking along with huge infrastructure development opportunities have made it one of the largest markets for manufactured goods and services. Due to its huge market and population, it has become one of the most competitive markets in the world. Conducting business in India has been difficult because of corruption, lack of infrastructure, and inadequate security.

 

Component Name

Unit

GDP (USD billion)

2074

GDP Annual Growth Rate

7.1

GDP Per Capita

1806

Unemployment Rate

4.9

Wages

122.1

Inflation Rate

5.05

Consumer Price Index (CPI)

131

Interest Rate

6.25

Balance of Trade (USD billion)

-7.674

Business Confidence

57.2

Manufacturing PMI (Index Points)

52.1 Index Points

Ease of Doing Business

130

Competitiveness Rank

39

Corruption Rank

76

Consumer Confidence

128

Consumer Spending (USD billion)

240.09

Bank Lending Rate (Consumers)

9.7

Corporate Tax Rate

34.61

Sales Tax Rate

14.5

            

The Market Entry Series

Exploring global markets is now recognized as the shortest way to ensure high time to efficiency conversion, when trying to expand revenues past domestic markets, for firms both large and small. Our market entry series, priced suitably low contains the essentials of all the parameters (Refer: Table of Contents) you must be apprised of before you can have a well informed contemplation of a business opportunity in your choice of industry, in your choice of geography.

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