Page 20 - Insurance Times April 2017 Special Issue on Newindia

Lifestyle Diseases:
There is also a substantial increase in lifestyle and commu-
nicable diseases such as diabetes and hypertension. How-
ever, only 15 percent of the population has some form of
health insurance, making out-of-pocket healthcare payments
in India amongst the highest in the world.

Therefore, considering the rising healthcare cost inflation
and changing disease pattern more towards lifestyle dis-
eases in the urban areas, the need for health insurance will
continue to increase. A recent study (Cigna 360 Well-being
report, focuses on monitoring and tracking motivations, per-
ceptions and attitudes towards overall 'well-being' amongst
consumers in across 11 countries including India) revealed
that, majority of Indians in the last year (65 per cent) paid
for their medical expense out of their own pocket and in
future, they will continue to pay for the expense themselves.
Furthermore, during retirement, only about 1 in 4 (26 per-
cent) claimed they will be covered by private insurance. insurance policies, which is not sufficient to take care of
their medical emergencies.
Trand in Health Insurance(HI) Premium over the past
On the one hand India faces a challenge
five years of lack of health insurance penetration;
(Rs. Crore) on the other hand those who have
Sectors 2011- 2012- 2013- 2014- 2015- health insurance are underinsured.
2012 2013 2014 2015 2016 People must understand that health in-
surance is not just a tax saving tool, and
Public Sector General Insurers 8015 9580 10841 12882 15591
therefore be mindful while choosing a
(61%) (62%) (62%) (64%) (64%)
sum insured for themselves and their
Private Sector General Insurers 3445 4205 4482 4386 4911 family. The standalone health insurer
(27%) (27%) (26%) (22%) (20%) studied around 7 lakh policyholders
Stand-alone Health Insurers 1609 1668 2172 2828 3946 spread across 82 cities in India, and has
found that both men and women across
(12%) (11%) (12%) (14%) (16%)
metros, tier 1 and 2 cities and towns are
Industry Total 13,069 15,453 17,495 20,096 24,448
underinsured.
Annual Growth Rate (In %) 18.5% 18.2% 13.2% 14.9% 21.7%

Note : Figures in the bracket indicate the market-share in total HI premium. At 52% men are more underinsured
than women at 46%. Also, underinsur-
Underinsurance: ance is more
The underinsurance percentage of people between prevalent in higher age brackets as 62% of policyholders
61-65 years is 75%. One of the main reasons for this alarm- above 45 years of age. The slight respite to this grave
ing underinsurance statistics is that policyholders do not problem is that young people seem to be choosing the right
upgrade their sum insured on the basis of their increasing sum insured comparatively, since at 38% people between
age, changing needs and medical inflation. 18-35 years are the least underinsured segment
amongst all other age groups. The maximum number of
Almost half of health insurance policyholders in India are underinsured people 59% is in South while North, West, East
underinsured finds a study by Apollo Munich. What this and Central parts of the country is 49%, 49%, 48% and 45%
means is that they have purchased low sum insured health respectively.

20 The Insurance Times, April 2017

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