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Sector Overview

The health insurance Sector is one of the most competitive sectors in India today. In a country where less than 15 per cent of population has some form of health insurance coverage, the potential for the health insurance segment remains high. It seems that there is an urgent need to ramp up the health insurance coverage in the country as out-of-pocket payments are still among the highest in the world. Furthermore, according to the statistics of the World Bank during 2011 - 2015, India has spent only 4.7 % of gross domestic product (GDP) on the health sector which is the lowest amongst the BRICS member countries pack. The Indian Health Insurance sector can be briefly described as:
  • The current size of Indian Health Insurance Industry is INR 17500 Crores and is expected to grow to INR 48000 crores by 2019-20 at CAGR of 20%
  • India has, globally, among the highest out of pocket consumer health expenditure. Currently about 89.2 %, 59% of all health expenditure is OOP
  • In a country where only about half the population does not have any access to any health financing mechanism, less than 30% of population is covered by one or another health insurance policy, the potential for health insurance remains very high
  • Public spending on health as percentage of GDP in India has stagnated in past two decades from 1990 to 2010 varying from 0.9 to 1.2 % of the GDP
  • The total expenditure on health in India as percentage of GDP has fallen from 4.3 % in 2003 to 3.9 % in 2011.
  • Of the total healthcare expenditure, public sector contributes 30%, i.e. about 1.2% of GDP.
Regulator: Insurance Regulatory and Development Authority (IRDAI) set up as autonomous body under the IRDAI Act, 1999, to protect the interests of policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.

Key Players: The New India Assurance, Apollo Munich, Bajaj Alliance, Religare, Max Bupa, United India Insurance, Cigna, Vidal Healthcare, HDFC Ergo, ICICI Prudential, ICICI Lombard, Future Generali , TATA AIG

Some Prominent FICCI Health Insurance Committee members (company name) in this sector : The New India Assurance, Max Bupa, Apollo Munich, Cigna, Religare, Vidal Healthcare, ICICI Lombard, Future Generali

FICCI's Engagement

FICCI has been working extensively and pro-actively in the health insurance sector, supported by its National Committee on health insurance. The committee is a multi-stakeholder committee, constituted to provide thought leadership in suggesting policy and regulatory reforms in health insurance sector. The FICCI Health Insurance Committee works very closely with IRDAI, to bring about favourable and positive policy changes for the betterment and development of health insurance sector of the country.

FICCI has setup few Task Forces on:
  • MSME
  • Distribution in Health Insurance
  • OPD Insurance Models
  • Health Savings Scheme