Monday, 8 May 2017

health insurance segment news

The Indian health insurance segment seems to have had the best ever year with the ending of the fiscal year 2017 and recording its highest ever revenue. This boost is being attributed to the ever increasing incidences of lifestyle-related health complications and rising medical costs. IRDAI data indicates that the health insurance segment witnessed a significant 24% year-on-year growth, with revenues standing at Rs.30,765 crore for 2016-17, as compared to 22.4% growth in 2015-16 and 15.6% growth in 2014-15.

The health insurance segment, which makes up for nearly 24% of the general insurance sector as a whole, has displayed a high growth curve for the last 3 years. The rising rate of inflation in the world of medical care is the primary reason why more and more people are now opting for health insurance. In India, costs of medical treatments are going up by almost 10 to 15% every year. Another reason why more and more people are gravitating towards health insurance is because their employer provided/corporate health insurance plan does not cover all medical conditions. More and more salaried people are now opting for individual health covers or top-ups on their existing employer provided health insurance plans in order to combat the steep rise in healthcare costs.
Standalone health insurance companies have recorded rapid growth of more than 40% and are far ahead than their fellow private general insurers and public sector players who have recorded a growth of 15% and 23% respectively. Star Health Insurance, the largest stand alone health insurance provider recorded a 47% year on year growth. Other standalone health insurance providers like Max Bupa, Apollo Munich, Religare and Cigna TTK recorded growth between 20-40%.