Page 16 - Insurance Times February 2024

jump in insurance penetration in group Among various segments under the Home health care finding
policies during the pandemic. nonlife insurance business, the health

Group policies have grown at a CAGR insurance business is the largest seg- takers in smaller cities
of 18.2% between FY17 and FY22, ment, with a contribution of 38.02 per India's home health care industry,
higher than the growth posted by re- cent (36.48 per cent in 202122) of the estimated to be worth $8.8 billion
tail as well as government insurance. total premium. The health insurance in 2023, is expanding to smaller cit-
With a greater number of companies segment reported growth of 21.32 per ies as service costs reduce and insur-
ance cover expands, say experts.
rolling out employee-centric health cent (26.27 per cent growth in 202122)
and wellness benefits, employer group with the premium amounting to Rs. An ageing population, a growing
policies led to a significant increase in 97,633 crore from Rs. 80,502 crore in middle class, lifestyle diseases, em-
lives covered in recent years. 202122. phasis on public-private partnerships
and the adoption of digital tech-
Nevertheless, only 37% of lives were The motor segment witnessed a year nologies are other factors helping
covered under health insurance on year growth of 15.40 per cent, with the industry alternatively known as
schemes in India in FY22 with govern- premium collection amounting to Rs. out-of-hospital care. The industry
ment policies covering 22% and private 81,280 crore in 202223 from Rs. provides at-home care and assists
health insurance covering 15%. It re- 70,433 crore in 202122. patients needing rehabilitation after
sults in high out-of-pocket expenses for hospitalisation.
"The surge in demand for health cov-
the uncovered population at a time erage in India over the past year has Vivek Srivastava, founder and chief
when medical inflation is more than executive officer (CEO) of HCAH In-
prompted insurers to introduce tailored
double the general inflation rate of 5- dia, said out-of-hospital care is any
products, leverage digital platforms
6%. This rising healthcare cost is push- service that does not require a su-
ing people to buy health insurance. for accessibility, and expand their per-specialist to be physically
healthcare provider networks,'' Ritesh
present and specialised infrastruc-
Kumar, MD and CEO, HDFC ERGO
Health cover drives growth General Insurance, told. ture to deliver care.
"Such services will be required
in non-life insurance The industry is undergoing a significant across the country. In fact, it may be
With about 24 per cent growth in the digital transformation, with platforms more relevant beyond metro cities
current financial year, health insurance and mobile apps enhancing policyhold- because it addresses access,
is now driving the nonlife insurance ers' convenience in purchasing, claim- affordability and standardised out-
business. ing, and accessing essential informa- comes which are more required in
The trend has become more visible in tion, he added. smaller cities," he said.
recent years, thanks to the awareness During 2022-23, the nonlife insurance Home health care companies said
Covid19 has generated, a senior official industry underwrote a total direct pre- they are trying to reduce the out-of-
of the IRDAI told. mium of Rs. 2.57 lakh crore in India, pocket expenditure families have to
"The upcoming unified digital platform registering a growth of 16.40 per cent bear. According to the government's
National Health Accounts estimates
for all insurance needs, Bima Sugam, from the previous year. Out of which, for 2019-20, private out-of-pocket
will make health cover more transpar- 27 private sector insurers (including expenditure accounted for 47.1 per
ent and accessible, which will further standalone health insurers) have under- cent of the overall health care costs
augment the reach of health cover," written Rs. 1.58 lakh crore as against borne by a family.
the official said. Rs. 1.30 lakh crore in 202122.
Amol Deshmukh, founder and CEO
There has been a significant rise in the The specialised insurers underwrote a of MedRabbits, home health care
contribution of health insurance gross direct premium amounting to Rs. significantly decreases expenses for
coverto overall nonlife insurance. For 15,818 crore. The public sector general customers compared to what hospi-
instance, in FY22, the proportion of insurers together contributed 38.42 tals charge. "There are no room
healthlines in business was 34 per cent, per cent of the market share, while rent charges at home, with home
and at the end of the third quarter of the private sector general insurers health care minimising unnecessary
the current financial year, it reached contributed the remaining 61.58 per doctor visits and hospital overhead
38 per cent, as per the latest data. cent. costs," he said.

The Insurance Times February 2024 15