Indian Health Insurance Market - June'13


Published on

Published in: Business, Economy & Finance
  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

Indian Health Insurance Market - June'13

  1. 1. 2013 RNCOS [INDIAN HEALTH INSURANCE INDUSTRY] The white paper depicts the current outlook of Indian health insurance industry, based on regulatory publications and expert opinions
  2. 2. Indian Insurance Industry Snapshot The Indian insurance market is one of the fastest growing in the world, mainly because of vast population and its huge potential. The health insurance segment holds a prominent share in the overall industry and is further expected to increase in the coming years as people are becoming more conscious about their health, and healthcare costs are rising in the country. Though the global industry was hit during recession, the resilient Indian health insurance sector continued to grow, posting an increased performance during 2011-12. As of September, 2012, 52 insurance companies operate in India of which 27 are in the general insurance business. As per industry estimates, the gap between health care spend in India and that covered by health insurance is a mammoth US$ 57 Billion. Health insurance penetration in India is very low. Around 2.2% population is covered under private health insurance while rural health penetration is less than 10% Total Premium Underwritten by Life & Non-life Insurers (Billion INR) 2916 2871 426 529 2010-11 2011-12 Life Insurers Non-Life Insurers Source: IRDA Net Incurred Claims: Non-Life Insurers (Billion INR) 295 350 2010-11 2011-12 Source: IRDA Segment Wise Premium Underwritten by Non-Life Insurers, Billion INR and Percentage Segment 2010-11 2011-12 Motor 182 (42.6%) 242 (45.8%) Health 99 (23.4%) 118 (22.3%) Fire 46 (10.7%) 54 (10.3%) Marine 25 (5.9%) 29 (5.4%) Others 74 (17.4%) 86 (16.1%) Total Premium 426 (100%) 529 (100%) Source: IRDA
  3. 3. Health Insurance Industry Health insurance is one of the most rapidly growing sectors in the Indian insurance industry with premium to the tune of INR 131 Billion underwritten in the year 2011- 12, reporting growth of 14.05% over the premium of INR 115 Billion underwritten in 2010-11. Apart from multi-line non-life insurers, Apollo Munich Health Insurance Co. Ltd., Star Health and Allied Insurance Co. Ltd. and Max Bupa Health Insurance Co. Ltd. operate in health insurance business. Life Insurance players have also entered the growing health insurance business. The total number of health insurance policy holders has grown from 8.3 Million in 2004 to over 200 Million in 2011. Health Insurance Premium (Billion INR) 131 170 225 294 380 505 Source: IRDA, RNCOS Note: f = RNCOS Forecast Drivers • Growing Middle Class • Lifestyle Diseases on Rise • Better Healthcare Infrastructure • Government Push Challenges • Low Awareness • Unaffordability • Limited Product Range • High Incidence of Suspect/Doubtful Claims • Lack of Standardized Policies across Insurers The existing healthcare insurance schemes available in India can be broadly categorized as: • Voluntary or private for-profit schemes • Mandatory or Government run schemes • Insurance offered by NGOs • Employer based schemes
  4. 4. Leading Non-Life Insurers Operating in Health insurance Industry Private Sector Public Sector ICICI Lombard New India Bajaj Allianz United HDFC Ergo National Cholamandalam Oriental Leading Health Insurers by Premium (%), 2010 Source: IRDA 11.2% 14.9% 13.2% 14.7% 10.7% 14.9% ICICI Lombard Bajaj Allianz New India United India Oriental National Star Health & Allied Insurance Others Life Insurers Operating in Health insurance Public Sector Standalone Heath Insurance Providers Star Health Apollo Munich Max Bupa Some of the Health Insurance Products Cleared during 2011- Insurer Apollo Munich Bajaj Allianz Cholamandalam MS ICICI Lombard Leading Health Insurers by Premium (%), 2010-11 3.0% 17.5% 14.9% Health Insurance Products Cleared during -12 Product • Optima Restore • Optima Senior • Optima Global • Personal Care Insurance Policy • Chola MS Family Healthline Insurance Policy • Chola MS Hospital Cash Benefit Insurance • Chola Top Up Insurance Policy • Chola MS Tax Plus Insurance Policy • Chola Arogya Bima Health Insurance Policy • Complete Health Insurance • Complete Health Insurance - Group • Personal protect • International Health Policy • Tax Gain Health Insurance
  5. 5. Player Level • June 2013: Reliance Life Insurance launches new healthcare plan • May 2013: SBI General Insurance launches health insurance policy • Mar 2013: IFFCO Tokio General Insurance is in the process of launching Domestic Travel Insurance • Mar 2013: Bharti AXA launches new health insurance Regulatory • IRDA standardizes health insurance o The guidelines lay down standard definitions of 46 commonly-used health insurance terms o They also standardize pre-authorization and claim forms to "streamline processes at all stages". • Indian insurers can set up offices abroad o The companies can do business in the life insurance, non- life insurance and in re-insurance space o The regulator has allowed to open a company as well as branches abroad • IRDA asks insurers to keep policyholders' records for 5 years • IRDA makes way for product approvals in one week • IRDA allows banks to become brokers o Those wishing to do so may have to have a segregated broking arm o It also limit of placement of business with one insurance company limited to not more than 25% of total business o the ceiling on business from one client has been increased to 50%, period of re-application for license by broker has been set at after one year from date of cancellation Recent Developments
  6. 6. Looking for an in-depth study Our Proposition RNCOS is a leading Business Consultancy firm helping its clients to enter new geographies and in attaining growth by developing market strategies for them. Critical questions that businesses need to address: • Where should you set up your business? • Who should be your distributors? • What is the current market structure & size? • Who should be your customers? We understand your immediate needs and your long-term goals and objective and work with you on how to accomplish them. RNCOS blends the best of strategy consulting with the best of market research to provide organizations with accurate, succinct answers to their most important business questions. Our offerings Market Insights • What is the market size • Structure of the market • Who are buyers • Buyers’ buying behavior Identification • Most suitable distributors and channels for your business. • Analyzing their strength, credibility, scale of operations. Product Segments • Similar products in the market • Features, attributes & market share of these products • Customer preferences • Price range of these products Competitive Assessment • Financial & strategic analysis of existing competition • Acceptance level among customers • Emerging competitors GROWTH PARTNER We help you make informed decisions through the practical application of research, hand holding you to your success…
  7. 7. For more information on how we can work with you Contact VARTIKA SEHGAL Sr. Research Specialist RNCOS E mail: Website: Phone: +91 120 4224700 /01 / 02/ 03 Address: B 129, Sector 6,