Rising healthcare expenses and heavy dependence on private medical care is driving the growth of standalone health insurance.
These are classified as those companies which focus only on the health insurance line of business. This sector is expected to grow at 25% YOY for the next five years, reaching the figure of ₹20,000 crore by 2020.
The potential is huge. An industry insider stated that despite the recent spurt in awareness about health insurance, only 27% of the population actually has some kind of health insurance. The penetration is expected to further improve because standalone health insurers are working to bring more diverse products into the market, that are designed to cater to the primary and tertiary needs of the customer.
The first standalone health insurance company was given license in 2007, and was allowed to operate with the purpose of filling the gap that existed between health insurance awareness and supply in the country. Out of the more than 50 insurance companies in India, only five are standalone health insurers.
According to Insurance Regulatory and Development Authority of India (IRDAI) data, the gross direct premium of the sector has increased to ₹4,151 crore in 2015-16 from ₹2,940 crore in 2014-15.
Source: The New Indian Express
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