Page 36 - The Insurance Times September 2025

Why Insurance isn't

Enough: How FinTechs

Like Fibe are Bridging

the Healthcare

Akshay Mehrotra
Financing Gap Co-Founder & Group CEO
Fibe

India's health insurance market grew to Rs. 1.3 trillion in 2024 and is projected to reach Rs. 2 trillion
by 2028, reflecting the country's socio-economic growth. Yet, many remain uninsured or underinsured,
highlighting a critical gap. Premium costs have risen sharply.over the past decade, 52% of
policyholders experienced a CAGR of 5-10%, with premiums doubling or tripling over ten years.

O ver 75% of Indians are either uninsured or awareness improves, the financial systems supporting this

growth have not kept pace. With out-of-pocket expenses
underinsured, and despite growing awareness,
accounting to a substantial amount of the total healthcare
nearly 48% of policyholders continue to opt for
health covers of Rs. 5 lakhs or less, leaving many
ments due to lack of immediate funds.
vulnerable to rising medical costs. These numbers reflect a expenditure, families often delay or decline critical treat-
hard truth: in today's rapidly evolving healthcare landscape,
being insured doesn't always mean being financially secure. Even when individuals opt for health insurance, it rarely
Despite having health insurance, millions of Indians still find guarantees a smooth financial experience. Premium costs,
themselves caught in a difficult middle ground, where their non-covered treatments, co-pays, and the need for multi-
policies fall short, and out-of-pocket expenses spiral beyond year or high-ticket policies remain formidable barriers, es-
control. From high-premium insurance plans to procedures pecially for India's middle-income and underserved seg-
not covered under standard policies, the financial burden ments. This is where FinTech innovation is stepping in-not
often lands squarely on the shoulders of patients. to replace insurance, but to complete the picture.

This widening gap between coverage and actual financial The Rise of BNPL in Healthcare: A
need has sparked a new wave of innovation in the Indian FinTech Innovation
healthcare financing space, led by FinTechs. By leveraging
technology and empathetic design, they are revolutionising In recent years, FinTech players have introduced tailored
how individuals and families finance their medical needs, financial solutions under the Buy Now, Pay Later (BNPL)
making healthcare and health insurance more accessible, model, enabling customers to finance their insurance pre-
affordable, and inclusive. miums or treatment costs via affordable monthly
instalments. These offerings include:
The Healthcare Reality Check Instant loan approvals-sometimes within seconds
Fully digital journeys with minimal paperwork
India's healthcare system continues to face a triple chal-
lenge of access, affordability, and awareness. Even as health No-cost or low-cost EMI options, often at 0% interest

The Insurance Times September 2025 33