Standalone health insurers are set to grow on the back of rising medical costs and heavy dependence on private medical care.
According to industry estimates, the sector would grow at the rate of 25% year-on-year over the next five years, with the market size growing up to INR200 billion (US$3.1 billion), reported the Express News Service.
Data available with the IRDAI show that the gross direct premium of all firms in the sector swelled from INR29.4 billion in FY2015 to INR41.5 billion in FY2016.
Even with growing awareness, only around 27% of the population have some kind of health insurance. So, standalone health insurance players have room to serve the uninsured market.
Health insurers are working towards developing more innovative products that cater to the primary and tertiary healthcare financing needs of people, said Mr Ashish Mehrotra, Managing Director and CEO of Max Bupa Health Insurance.
There are several standalone health insurance players in the country, including players such as Star Health and Allied Insurance, Apollo Munich Health Insurance, Aditya Birla Health Insurance, Bupa Health Insurance, Religare Health Insurance, and Cigna TTK. The first licence was issued in 2007.