According to a recent report, the health insurance industry holds a huge potential in India. The influx of private health insurance corporations across the nation in recent years proves increasing awareness as well as demand of possessing a health cover among patients.
These days, insuring health has definitely become a significant task owing to the rising number of diseases as well as risks among humanities. This is true for most of the developing nations including India that has a huge population as well as insufficient resources. Health insurance across India is definitely at a budding stage in this respect.
According to the Chief Financial Officer (CFO), Max Bupa, Neeraj Basur, when Indian health insurance industry is compared to various other markets, it is definitely under-penetrated. He also added that most of the expenditure related to health is self-funded by most households. However, health insurance is also one of the most promising sectors in the non-life industry in India in the present time. Health insurance in India accounts for about twenty per cent of the overall general insurance industry in India. This is increasing at a Compounded Annual Growth Rate (CAGR) of 18-20 per cent for the past few years.
As per a statement made by Basur, the major reason behind this is the regular changing regulatory environment, enhanced healthcare requirements and altering demographic situation. Likewise, the present era has observed major private corporations making their appearance in this unexplored health insurance sector.
Suresh Sugathan, Head â€“ Health Administration Team (Operations), Bajaj Allianz General Insurance said that the past few years have also observed a slew of new entrants into the health insurance industry. He also mentioned that this has resulted in a scenario quite competitive in terms of customer service and pricing. The recent execution of health portability is another constructive step, which will activate a new aspect in service heights.