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India Health Insurance Market Analysis

The India Health And Medical Insurance Market size is estimated at INR 0.91 trillion in 2024, and is expected to reach INR 1.5 trillion by 2029, growing at a CAGR of 10.60% during the forecast period (2024-2029).

Health and Medical Insurance is a type of health coverage that pays for medical expenses incurred because of an illness. These costs could be related to hospitalization, medication, or doctor consultation fees. The increasing cost of quality healthcare and increased demand for healthcare coverage due to growing income levels, rising life expectancy, and the epidemiological shift toward noncommunicable diseases have made health and medical coverage mandatory in India.

Health insurance is a major contributor to the expansion of the general insurance market in India. It contributes to approximately 29% of total general insurance premium income in India. The expansion of this sector is significant in terms of the overall expansion of the general insurance industry. The insurance market is expanding due to significant government initiatives, strong democratic factors, a favorable regulatory framework, growing partnerships, product innovations, and dynamic distribution networks. Health insurance is a rapidly growing sector of the Indian economy. For instance, as per the India Brand Equity Foundation, in the fiscal year 2020, there was an increase in health insurance coverage. In Bihar, Assam, and Sikkim, the proportion of households with health insurance increased by 89% in FY20 compared to FY16.

While the global pandemic had an impact on many industries, COVID-19 spurred growth in the Indian insurance sector. The health and medical insurance industry of India demonstrated its importance by offering COVID-19-specific health insurance plans and providing assistance to policyholders. Health insurance plan sales increased amid COVID-19, which benefited both customers and insurers. Health insurance providers with exclusive facilities and benefits were in higher demand. For instance, the Insurance Regulatory and Development Authority of India (IRDAI) mandated and instructed health insurers to include COVID-19 coverage in all policyholders' regular health insurance plans.

Health insurance is an emerging insurance sector in India, following life and automobile insurance. The rise of the middle class, higher hospitalization costs, expensive health care, digitization, and an increase in awareness are some important drivers for the growth of India's health insurance market. The health insurance industry is at an emerging stage. There exists a huge potential for growth and penetration of health insurance among a larger population. Additionally, there are both opportunities and restraints in the marketing and distribution of health insurance products in India.

India Health Insurance Market Trends

Government Subsidized Health Insurance Schemes is Boosting the Sales of Health and Medical Insurance Policies

India Health Insurance Industry Segmentation

A health and medical insurance plan is one that pays for or shares the costs of medical care. These plans are classified as commercial health insurance because they are provided by government, private, and stand-alone health insurance companies. The report also covers a complete background analysis of the India Health and Medical Insurance market, including the assessment of the economy and the contribution of the sectors in the economy, a market overview of key segments and emerging trends in the market segments, market dynamics, insights, and key statistics. The India Health and Medical Insurance market is segmented by Type of Insurance Provider (Public, Private, Standalone Health Insurers), Type of Customer (Corporate and Non-corporate, Type of Coverage (Individual, Family or Floater), Product Type (Disease Specific and General), Demographics (Minors, Adults, Senior Citizens), and by Distribution Channel (Direct to Customers, Brokers, Individual Agents, Corporate Agents, Online, Bancassurance, and Other Distribution Channels). The report offers market size and forecasts for India Health and Medical Insurance Market in value (USD Million) for all the above segments.