Page 19 - Insurance Times April 2017 Special Issue on Newindia

HEALTH

INSURANCE IS

THE FASTEST

GROWING

SEGMENT IN

INDIA

H ealth insurance is one of the fastest growing telemedicine, health insurance and medical equipment is
segment in India but the insurance amount is not
expected to reach US $100 billion by 2015 from the current
sufficient as there is lack of awareness about the
US $65 billion, growing at around 20 percent year of year
amount of sum insured, over dependence on
corporate health insurance coverage, willingness to pay a as per rating agency Fitch.
premium that is only up to the highest limit of rebate under Health cover has been one of the fastest growing segments
Section 80D of the Income Tax Act etc. India's healthcare within the insurance industry. However, despite its growth,
sector has been growing rapidly driven by a number of the penetration of health insurance remains low in the coun-
factors such as increasing the average life expectancy and try, rendering a large section of the population open to huge
average income level and rising awareness for health out-of-pocket medical expenses. With rising medical cost,
insurance. there is need for a wider penetration of health insurance.
The Indian healthcare industry, which comprises hospitals, In a country with a population of 1.25 billion people, pri-
medicines, infrastructure, and medical devices, outsourcing vate health insurance penetration is still only approximately
5 percent.
About the author
This provides a huge opportunity for health insurance com-
Mr Jagendra Kumar is currently the panies. Moreover, in India the share of out-of-pocket expen-
Corporate Head (Training) at Shriram diture in overall healthcare expenditure is significantly
General Insurance Company. Mr Kumar is
a prolific writer and has wide experience in higher than comparable developing countries as well as the
the general insurance industry. Before developed countries. Our government healthcare spending
joining SGI he was the CEO in Pearl
Jagendra is more focused on low income and below the poverty line
Kumar Insurance brokers. (BPL) segments.

The Insurance Times, April 2017 19

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