Magic of Health Insurance


Mr. Segar Sampath - Director, Health

General Insurance Council 

The Health Insurance Premium for the insurance industry in 2003.04 was Rs. 1354 Crores.  It grew to Rs. 90668 Crores by 2022.23.  The Compounded Annual Growth Rate for the Health line of business is 25%.  A CAGR of 25% year after year, over two decades is stupendous.   But the magic of Health Insurance lies not in its past glorious growth.  It lies in the explosive growth that awaits the industry in the years to come.

Fabulous as the past growth is, the  future that beckons  this line of business in a vast, young country like ours is full of promise.   With millions of individuals yet to be covered under Health Insurance, the industry is poised for an explosive growth in the immediate years to come.

It is not alone in the numbers- of policies, of premium, of persons covered, that the industry is proud of .  The industry, ably guided by the Regulator, has provided several solutions to ease the customer’s financial burden of hospitalisation.  In the past two decades, Health Insurance has been made user friendly, accessible and affordable.  Measures galore have been put in place to reassure the customer that the industry walks the talk.  Standardisation of terms, exclusions have brought clarity on scope and limits of coverage.  Cashless access provides relief at the point of hospitalisation.

As the industry continues to engage with all stakeholders in providing hassle free services to the customers, challenges do surface.  Cost of Healthcare keeps going up.   Insurance premium goes up too.  But customers expect to be insulated from these inflationary pressures.   Solutions have to be found to make healthcare affordable without compromising on quality of treatment or outcome. 

Market penetration is another challenge.  Impressive as the numbers covered are, the numbers not covered is formidable.   Coverage to the millions who need it but do not have it is a daunting task.   The industry keeps expanding its horizons to enlarge coverage and to enhance experience.  Many miles covered, and many more to go.