Page 26 - Insurance Times November 2022

Standalone Health Insurers Health- Health- Health-Government Overseas Total
Retail Group schemes Medical
Nivabupa health insurance company limited 387 97 --- 1 485
Aditya Birla Health Insurance Co Ltd 110 216 --- --- 326
Care Health Insurance Ltd 341 278 --- 27 646
ManipalCigna Health Insurance Co Ltd 70 119 --- 0 189
Star Health & Allied Insurance Co Ltd 1,392 103 --- 0 1,495
Stand-alone Health sub-Total 2,300 813 --- 28 3,140
Percentage of Standalone 73% 26% 0% 1%
Industry Total 4,543 8,601 1,248 178 14,570

The standalone health insurance companies primarily focus under the entire non-life, including health insurance and
on individual health insurance while making negligible other non-life insurance, is 1% in 2020-21. Of the large
contributions towards the government health schemes proportion of the population covered under the government
comprising 61% (from table-1) of the population. health insurance scheme, 61%, only 11% of the total premium
is contributed through this way. Further out of the total
The skewness of premium income between standalone and government health insurance premium, 62% is contributed
general insurance companies is shown below. On the retail by the public sector general insurance companies. This
health side, both are doing similar business, while in group indicates that a high percentage of the population covered
business, the standalone contribution is around 10% of GI (61%) by the government health insurance schemes may not
companies. have enough coverage to meet their medical health needs
because of the lower sum assured.

Further, the load of group health insurance schemes is
primarily taken by public sector general insurance companies
by doing 62% of the total group health insurance.

Individual health insurance coverage is on the lower side,
visible both from the population covered (9%) and premium
collected 20% of the total premium. Out of this 20% of the
retail premium, the standalone health insurance companies
are doing 73% of the business. So individual health insurance
companies are mainly focusing on retail health insurance.

Overall, the health insurance business in India is skewed
Discussion toward public sector general insurance companies that
The healthcare expenditure by the government in India is contribute 62% of the total premium income. They also largely
around 3% (world bank data) of GDP in the year 2018-19. This contribute towards the government health insurance 62% of
coverage is well below European Union and the UK at about the total group health insurance premium while standalone
10%, where the health insurance system is well developed, health insurance companies focus on retail health.
and the health care benefits are free for the people in the
UK. However, the government's low investment in health Conclusion
care forces people to rely on health insurance. In population terms, India has insured 70% of the population;
the government health insurance schemes cover 61% of this
With a population of 135 Cr people, 70% of them, 94.5 Cr, population, but the premium contribution is low at 11%.
are insured, according to the Niti Aayog report, which is quite Public sector general insurance companies are taking most
substantial. However, despite the large population covered of the health insurance load, while standalone health
by the health insurance schemes, the insurance penetration insurance companies are doing retail business.

22 November 2022 The Insurance Times