Page 12 - The Insurance Times April 2025

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3 of 5 in India succumb
Health insurers mop up Rs. 1 Lakh crore as premi-
after cancer diagnosis ums rise
Nearly three out of five people in In- Health insurance premiums crossed the Rs 1-lakh-crore mark in the first 10
dia succumb following cancer diagno- months of the current financial year, marking a 10% increase from Rs 90,785
sis, Indian Council of Medical Research crore mopped up in the same period last year. However, growth has slowed
(ICMR) has claimed. The apex health compared to the previous fiscal year when premiums grew 20%.
research agency's claim is based on an
analysis of the estimates of incidence Total health insurance premiums for FY24 stood at Rs 1.07 lakh crore. In
and mortality of cancer from FY25, the premiums reached Rs 1 lakh crore in Jan 2025, data reported by
GLOBOCAN 2022 - an online database non-life insurers showed. Individual health segment recorded the fastest
that provides cancer statistics for 185 growth, expanding by 13.5% to Rs 37,068 crore, accounting for 38% of the
countries. total. Group health insurance, primarily purchased by companies for em-
ployees, remained the dominant category with a 53% share. Premiums in
India is one of the largest contributors
to global cancer burden, ranking third this segment rose by 12.4% to Rs 47,312 crore.
in terms of new incidences. China ranks In contrast, premiums from govt-backed schemes, including Ayushman
one in cancer incidence followed by Bharat Yojana, declined by 9.7% to Rs 8,828 crore. Under the scheme, state
the US. govts either purchase insurance or establish trusts to settle claims.
According to the ICMR study, pub- In FY24, all three segments - govt schemes, group insurance, and individual
lished in the journal 'The Lancet Re- policies - had registered double-digit growth. This year, total premium
gional - Southeast Asia', the incident to growth has moderated to 10.4%, with some policyholders seeing increases
mortality percentage in India stands exceeding 10% following rate revisions by insurers.
at approximately 65, which means
that three out of five individuals would
have a higher 8.3%-10.3% chance of About 10% policyholders have seen
be expected to die if diagnosed with developing cancer with a 5.5%-7.6%
cancer. The incident to mortality per- their renewal costs rise by 30% or more
centages in China and the US stand at chance of dying from the disease. this year - only half of them paid the
50 and 23 respectively, according to full premium.
the study. Health premiums surge, Why are premiums soaring? Insurers
Children (0-14) and reproductive-age some renewals take a hit say a worsening claims ratio (the per-
centage of claims to total premium
(15-49) individuals, ICMR says, have a Health insurance premium costs have
0.1%-2.3% chance of developing can- surged forcing some policyholders to collected) is behind the hikes.
cer and a 0.08%-1.3% chance of dying either downgrade or drop out of their The reason why a section of policyhold-
from it. However, the study adds, cover. 1 in 10 policyholders has missed ers see sharp hikes is that health pre-
middle-aged and geriatric individuals out on renewals in this financial year. miums do not rise in a steady, predict-

12 April 2025 The Insurance Times