Market Insights Financial Insurances Non-life insurances

Health insurance - India

India

The Health insurance market market in India is expected to witness significant growth in the coming years.
According to projections, the market size (gross written premium) is set to reach INR US$89.45bn by 2024.
This indicates a positive trend and highlights the potential for expansion within the sector.
Furthermore, the average spending per capita in the Health insurance market market is estimated to be INR US$62.05 in 2024.
This figure demonstrates the willingness of individuals to invest in healthcare coverage, emphasizing the importance of Health insurance market in India.
Looking ahead, the gross written premium is anticipated to experience a compound annual growth rate (CAGR) of 6.76% between 2024 and 2028.
This growth trajectory is expected to culminate in a market volume of INR US$116.20bn by 2028.
Such growth signifies a positive outlook for the Health insurance market market in India, indicating a rising demand for comprehensive health coverage.
In a global context, it is worth noting that the United States is projected to generate the highest gross written premium in the Health insurance market market, amounting to US$1,607.0bn in 2024.
This statistic underscores the significant scale of the American market and its dominance in terms of financial contributions to the industry.
In conclusion, the Health insurance market market in India is poised for growth, with the market size, per capita spending, and annual growth rate all indicating positive trends.
As the sector continues to expand, it is important for stakeholders to adapt and cater to the evolving needs of consumers in order to capitalize on the opportunities presented by this burgeoning market segment.
India's health insurance market is experiencing a surge in demand as the population becomes more aware of the importance of healthcare coverage.

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Analyst Opinion

The private health insurance market caters to individuals and families seeking coverage beyond what government-sponsored health programs provide. In this distinct sector, several notable trends are reshaping the landscape of private health insurance, while key indicators offer insights into its performance and sustainability.

Trends on the market:

Telemedicine Integration: Private health insurers are increasingly incorporating telemedicine services into their offerings. This trend allows policyholders to access medical care remotely, improving convenience and accessibility.
Wellness and Preventive Health Packages: Insurers are emphasizing wellness and preventive health packages, offering policyholders access to gym memberships, wellness apps, and preventive health screenings to encourage healthier lifestyles.
Personalized Health Plans: The focus is shifting towards personalized health insurance plans, tailored to individual health needs. Data-driven underwriting helps in customizing coverage and premiums based on policyholders' health profiles.
Pharmaceutical Cost Containment: To manage rising drug costs, insurers are partnering with pharmacy benefit managers to negotiate lower drug prices and provide cost-effective prescription drug coverage.
Digital Health Records and Data Security: Ensuring the security of digital health records is a top priority, with insurers investing in advanced cybersecurity measures to protect policyholders' sensitive health information.

Underlying indicators:

Healthcare Costs and Utilization: Monitoring healthcare costs and utilization patterns helps assess the financial health of private health insurers. Changes in healthcare demand and cost trends affect premium pricing.
Regulatory Compliance: Staying compliant with evolving healthcare regulations and privacy laws is vital for private health insurers to operate within legal boundaries and adapt to changing healthcare landscapes.
Provider Networks: The size and quality of provider networks play a pivotal role in policyholder satisfaction. Insurers must ensure their networks meet the needs and expectations of their customers.
Customer Retention and Acquisition: Tracking customer retention and acquisition rates is essential in understanding the competitiveness of private health insurance products and the effectiveness of marketing and customer service efforts.
Preventive Health Measures: The adoption of preventive health measures and wellness programs among policyholders can influence claims experience and long-term health outcomes, thus affecting insurers' profitability.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on gross written premium, gross written premium per capita, gross claim payments, loss ratio, and distribution channels.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market layer. As a basis for evaluating markets, we use industry associations, national statistic offices, and international organizations, such as OECD. Next we use relevant key market indicators and data from country-specific associations such as insurance consumer spending, gross domestic product, insurance - consumer price index (CPI), population growth. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing and HOLT-linear. The main drivers are insurance consumer spending and insurance - consumer price index (CPI).

Additional Notes:

The market is updated twice per year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.