Scope of Health insurance in indian economy

Health insurance is India’s emerging service industry. India is an increasing economy, nowadays individuals in urban and rural regions are more trained, health-conscious, rising living standards, and the need for quality healthcare leads to the need for health insurance. Government industry and private sector players provide health insurance in India. Many private sector insurance companies joined the insurance industry after deregulation and offered customers a broad variety of innovative products. Liberalization also opened the doors for overseas players to join the health insurance industry. As a result, the scope of Health insurance sector is getting wider. Government of India also focuses on improving health care and health insurance facilities.

For each citizen, recent govt. has envisaged health insurance. It has intended to cover the entire population’s medical treatments such as free drugs, insurance for serious ailments under Universal Health Insurance called National Health Assurance Mission. Growing middle class, educated youth, awareness of the need for lifestyle disease protection, tax advantages are factors that give health insurance industry growth chances to become the fastest increasing non-life insurance segment. These possibilities facilitate the expansion of market players’ company and market competitiveness. Companies are becoming increasingly customer-centric, driving down costs, using fresh technology, etc. to help them develop. However, there are some structural problems faced by the companies like high claim ratios, less understanding of product, changing need of customers etc., which emphasize companies to innovate products on all fronts.

Health insurance plays a crucial role in decreasing enormous expenses incurred by individuals in uncertain medical conditions. With rising medical costs, recessions, fresh illnesses spreading throughout, ownership of health insurance policy makes fighting these hard times easy. At the same moment, there has been a significant reduction in people’s buying power in today’s globe with so much inflation. Health issues can lead to severe indebtedness with all this. Even with such costs, out of pocket Indian people are still unwilling to purchase or invest in insurance policies.

Health Insurance Industry has experienced vital changes since inception in terms of premium structures, high claim ratios, reluctance to buy health insurance, which has given private companies a platform to develop in the Indian market.

The insurance sector has enormous potential not only because income is rising and assets are growing, but also because the system is becoming increasingly unstable.  In a sense, we are living in an extra risky world. Trade is becoming more and more global. Technologies are changing and being replaced at a faster rate. In this more uncertain world, for which enough evidence is available in the recent period, insurance have an imperative role to play in reducing the risk burden that the individuals and businesses have to bear. The approach to insurance should be in tune with the changing times.

The aim of the insurance sector in India is to extend the insurance coverage over a larger section of the population and a wider segment of activities. The industry’s three guiding principles must be to pay premium not greater than what is acceptable by rigorous actuarial factors, to invest the resources to obtain maximum return for policyholders consistent with capital security, and to provide policyholders with effective and timely service. With creative corporate planning and a steady dedication to enhanced service, it is possible to achieve the mission of expanding the insurance network. There is a likelihood of a shoot in job prospects. Several websites are being created for insurance purposes, a few economic magazines dedicated solely to insurance and a few training institutes. 

India has the health insurance industry’s wide scope and potential for development. The section of health insurance has scope for comfortable development, as it has enormous potential in India compared to foreign and developed economies.

The health insurance sector has enormous scope in India, and the latest entry of private health insurers demonstrates the increasing demand and health cover. The industry’s low penetration not only encourages private and public players, but also stand – alone health insurance companies to put their feet into this market. Existing insurance cover provided a cover with limited sum insurance with innovative products and cover today, the scope is enormous.

Major players in Health insurance industry

Public Sector Providers (Government): Major Premium underwritten in health insurance is from public sector players. Major public sector players are New India Assurance, United India Insurance, National Insurance, Oriental Insurance etc.

Private Sector Providers: Private sector health insurance is held by four big players i.e. ICICI Lombard, Bajaj-Allianz, HDFC ERGO, Reliance General-Insurance and some other are IFFCO TOKIO, Royal Sundaram, TATA-AIG, Bharti-AXA, Cholamandalam etc. 

Standalone Providers: As per IRDAI report, there are Five private sector insures are registered to underwrite health insurance policies. Companies are Star health Allied Insurance, Apollo Munich, Max Bupa, Religare and Cigna TTK health insurance company Ltd.