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India Health Insurance 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

  • Published Date: January 2022
  • Report ID: BWC21212
  • Available Format: PDF
  • Page: 118

Report Overview

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.

India Health Insurance Market- Industry Trends & Forecast Report 2027

India health insurance market is thriving and anticipated to grow at a CAGR of 10.1% during the forecast period (2021-2027). The growth of the health insurance market of India can be ascribed to the rising prevalence of chronic diseases and increasing awareness among the general public regarding the benefits of health insurance. Furthermore, favorable government initiatives such as Ayushmann Bharat that provide health insurance coverage of up to five lakhs are anticipated to strengthen the growth of the health insurance market during the forecast period.

India Health Insurance Market- Overview

According to the definition provided by ICICI Pru Life, “health insurance is the type of insurance that covers medical expenses that arise due to an illness”. Medical expenses such as hospital bills, costs of medicine, doctor consultation fees, and diagnostic expenses are generally covered under health insurance. While some health insurances cover hospitalization costs, others offer lump-sum payments on detection of illness. Several health insurance plans also offer cashless treatment across leading hospitals in the country.

India Health Insurance Market Forecast and Trends

Growth Drivers

Favorable Government Initiatives for Health Insurance

A number of initiatives are being taken by the Indian government to bring health insurance coverage to the missing middle class. For instance, government policies such as Ayushman Bharat Pradhan Mantri Jan Arogya Yojana provide low-income earners in India with free health insurance coverage. The India Brand Equity Foundation estimates that over 76,663 Ayushman Bharat-Health and Wellness Centers are to be operational in India by September 2022. In addition, the government is designing low-cost comprehensive health insurance plans to encourage the adoption of health insurance. It is anticipated that these initiatives will drive the India health insurance sector forward.

Rising Investments in the Indian Insurance Sector

There is significant growth potential in the Indian insurance industry, which is contributing to the growth of the overall health insurance market. Health insurance companies of the country have been establishing new partnerships to extend their services. For instance, SBI General, recently announced its technological collaboration with Google Pay to offer hassle-free health insurance. Additionally, there are several companies, including Star Health, that are preparing for Initial Public Offerings (IPOs) in the near future, which are expected to grow their market share and revenue.

Restraints

Negative Biases of General Public Against Health Insurance Policies

In India, at least 30% of the population is without health insurance, which translates to 40 crore individuals. According to Niti Aayog, a major factor contributing to this gap in health insurance is the gap and overlap in the existing schemes. Health insurance companies in India claim that health insurance adoption in India is limited by the lack of awareness and lacklustre attitude consumers have towards their overall health. In order to resolve these issues, the government needs to strengthen the regulatory framework in order to boost consumer confidence in health insurance.

Impact of COVID-19 on India Health Insurance Market

The sudden outbreak of the COVID-19 pandemic proved to be a boon for the India health insurance market. Also, many families who were insured under the Ayushman Bharat and other State government extension schemes were benefited during the COVID-19 treatment. Furthermore, a number of insurance companies in India offer Coronavirus Health Insurance policies that cover the medical expenses incurred during the treatment of COVID-19. Several policies such as Corona Kavach Policy, Coronavirus Group Health Insurance were introduced during the coronavirus pandemic, which significantly proliferated the growth of the India health insurance market.

India Health Insurance Market - By Plan

Based on plans, the India health insurance market is segmented into medical insurance, critical illness insurance, family floater health insurance, and others. Among these, the medical insurance segment holds the largest share in the India health insurance market. The increasing healthcare cost and availability of a wide range of medical insurance policies with various features and facilities are driving the growth of the medical insurance plan. The medical insurance segment also covers pre- and post-hospitalization costs, which disburdens policyholders.

India Health Insurance Market - By Provider

Based on providers, the India health insurance market is segmented into preferred provider organizations (PPOs), point of service (POS), health maintenance organizations (HMOs), and exclusive provider organizations (EPOs). The preferred provider organizations (PPOs) segment accounted for the largest share in the market. This is because PPOS allows policyholders to choose their health care providers more freely than its counterparts. Additionally, they have the option of receiving higher hospitalization bills if they choose to use a provider from the network.

India Health Insurance Market - Regional Insights

Geographically, the India health insurance market is segmented into North India, South India, West India, and East India. Western India dominates the country’s health insurance market because of the high concentration of leading health insurance providers, such as Life Insurance Corporation (LIC), ICICI Prudential Life, Kotak Mahindra Life Insurance, etc. Furthermore, various government initiatives such as Mahatma Jyotiba Phule Jan Arogya Yojana in Maharashtra are also playing a crucial role in driving the health insurance market in this region. According to an RTI report, around 5 lakh patients received treatment during COVID-19 crises under this scheme.

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.

Market players such as Bharti AXA, SBI General Insurance, HDFC ERGO, etc., who have a long history in the industry, dominate the market due to their strong consumer bases. Insurance companies offer multiple types of policies based on illnesses, age demographics, finances, etc., to cover a wider share of the market. Furthermore, they are taking advantage of advertising and social media to create awareness of the advantages of health insurance. This market is also characterized by the adoption of competitive strategies such as partnerships, mergers, acquisitions, joint ventures, etc.

Recent Development

  • In December 2021, Plum, a group health insurance startup, announced its partnership with Razorpay, a leading payment gateway in India, to offer exclusive group health benefits to early-stage startups.

Scope of the Report

Attributes Details
Years Considered Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
Facts Covered Revenue in USD Billion
Market Coverage North India, South India, West India, East India
Product Service/Segmentation By Plan Type, By Demographic, By Provider, By Region
Key Players 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.

By Plan Type

  • Medical Insurance
  • Critical Illness Insurance
  • Family Floater Health Insurance
  • Others

By Demographic

  • 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
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Key Market Segments
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Market Drivers
        1. Favorable Government Initiatives For Health Insurance
        2. Rising Investments In The Indian Insurance Sector
      2. Market Restraints
        1. Negative Biases Of General Public Against Health Insurance Policies
      3. Market Challenges
        1. Limited Digitization in Rural India
      4. Market Opportunity
        1. Tax Benefits Of Health Insurance
        2. Increasing Adoption Of Insurtech In Health Insurance
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. India Health Insurance Market Overview
    1. Market Size & Forecast by Value, 2017-2027
    2. Market Size and Forecast, By Segment
      1. By Plan Type
        1. Medical Insurance
        2. Critical Illness Insurance
        3. Family Floater Health Insurance
        4. Others
      2. By Demographic
        1. Minor
        2. Adults
        3. Senior Citizen
      3. By Provider
        1. Preferred Provider Organizations (PPOs)
        2. Point of Service (POS)
        3. Health Maintenance Organizations (HMOs)
        4. Exclusive Provider Organizations (EPOs)
      4. By Region
        1. North India
        2. South India
        3. West India
        4. East India
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2020)
    3. Competitive Benchmarking by Operating Parameters
  7. Impact of COVID-19 on India Health Insurance Market
  8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. National Insurance Co. Ltd.
    2. Go Digit General Insurance Ltd.
    3. Bajaj Allianz General Insurance Co. Ltd.
    4. Cholamandalam MS General Insurance Co. Ltd.
    5. Bharti AXA General Insurance Co. Ltd.
    6. HDFC ERGO General Insurance Co. Ltd.
    7. Future Generali India Insurance Co. Ltd.
    8. The New India Assurance Co. Ltd.
    9. SBI General Insurance Co. Ltd.
    10. Reliance General Insurance Co. Ltd.
    11. Other Prominent Players
  9. Key Strategic Recommendations

 

List of Figures

 

Figure 1: India Health Insurance Market Segmentation

 

Figure 2: India Health Insurance Market Value Chain Analysis,

 

Figure 3: Company Market Share Analysis, 2020

 

Figure 4: India Health Insurance Market Size, By Value (USD Million), 2017-2027

 

Figure 5: India Health Insurance Market Share (%), By Plan Type, By Value, 2017-2027

 

Figure 6: India Health Insurance Market Share (%), By Demographic, By Value, 2017-2027

 

Figure 7: India Health Insurance Market Share (%), By Provider, By Value, 2017-2027

 

Figure 8: India Health Insurance Market Share (%), By Region, By Value, 2017-2027

 

 

List of Tables

 

Table 1: India Health Insurance Market Size, By Plan Type, By Value, (USD Million), 2017-2027

Table 2: India Health Insurance Market Size, By Demographic, By Value, (USD Million), 2017-2027

Table 3: India Health Insurance Market Size, By Provider, By Value, (USD Million), 2017-2027

Table 4: India Health Insurance Market Size, By Region, By Value (USD Million), 2017-2027

Table 5: National Insurance Co. Ltd. Financial Analysis

Table 6: National Insurance Co. Ltd. Business Overview

Table 7: Future Generali India Insurance Co. Ltd. Financial Analysis

Table 8: Future Generali India Insurance Co. Ltd. Business Overview

Table 9: Bajaj Allianz General Insurance Co. Ltd. Financial Analysis

Table 10: Bajaj Allianz General Insurance Co. Ltd. Business Overview

Table 11: Cholamandalam MS General Insurance Co. Ltd. Financial Analysis

Table 12: Cholamandalam MS General Insurance Co. Ltd. Business Overview

Table 13: Bharti AXA General Insurance Co. Ltd. Financial Analysis

Table 14: Bharti AXA General Insurance Co. Ltd. Business Overview

Table 15: HDFC ERGO General Insurance Co. Ltd. Financial Analysis

Table 16: HDFC ERGO General Insurance Co. Ltd. Business Overview

Table 17: Go Digit General Insurance Ltd. Financial Analysis

Table 18: Go Digit General Insurance Ltd. Business Overview

Table 19: The New India Assurance Co. Ltd. Financial Analysis

Table 20: The New India Assurance Co. Ltd. Business Overview

Table 21: SBI General Insurance Co. Ltd. Financial Analysis

Table 22: SBI General Insurance Co. Ltd. Business Overview

Table 23: Reliance General Insurance Co. Ltd. Financial Analysis

Table 24: Reliance General Insurance Co. Ltd. Business Overview

Market Segmentation

By Plan Type

  • Medical Insurance
  • Critical Illness Insurance
  • Family Floater Health Insurance
  • Others

By Demographic

  • 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

 

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