The document discusses the emerging trend of health insurance in India. It summarizes that the Indian health insurance market grew at a CAGR of 37% between 2002-2008 and is expected to grow at a CAGR of 42.3% between 2008-2015. The main drivers of growth are increasing awareness, rising healthcare costs, and supportive demographic trends of a prospering middle class. However, the market also faces restraints like inadequate healthcare infrastructure and lack of standardization.

1. “HEALTH INSURANCE– AN
EMERGING TREND IN THE
INSURANCE MARKETS”
SUBMITTED BY
TEAM ROUBLE

2. CONTENTS
Introduction
Market size and Forecast
Market Drivers
Market Restraints
Competitive structure
Value chain
Recommendations

3. Indian Health Insurance Market 2002-
Value in in INR Crs 08
The Indian Health care insurance industry was worth INR 5125crs with a CAGR
of 37% between 2002-08. The market penetration is around 2% of the total
population in India.The health insurance industry is one of the fastest growing
segments among other Non-life Insurance segments.
*SOURCE :
IRDA

4. MARKET SIZE & FORECAST
Premium in INR Crs
.
The Indian Health Care Industry is worth INR 60497 Crs with a CAGR of approx.
42.3% in 2008 & 2015. The market penetration will be 3 folds higher in 2015. The
main factors of growth are increased awareness. According to World Bank report 99%
of the Indians will face financial crunch in case of any critical illness, hence there is a
need of Health Insurance.

5. MARKET DRIVERS
Increasing awareness of Health Insurance.
Rising healthcare costs have increased the need for Health
Insurance.
Supporting Demographic Profiles (Prospering Middle Class,
Increasing Disease State & Population).
Detariffing of general insurance industry (which has
increased emphasis & by insurance comp. towards health
insurance).
Rationalization of premium rates ( e.g. trend of upward
revision in respect of Group Health Policies).
To encourage Foreign Health Insurers to enter the Indian market government has
proposed to raise the Foreign Direct Investment (FDI) limit in insurance from 26%
to 49%,Govt. initiatives are always supportive to Healthcare Insurance
Environment

6. MARKET DRIVERS (CONTD.)
The spending on health care is showing increasing trend from the
year 2005. The prospering middle class in India supports this
spending environment. The average annual household
consumption in healthcare is expected to double between 2005 &
2025.
* SOURCE: MCKINSEY
There is clear indication that seekers and strivers population is
significantly increasing in the next future. There is a direct
proportionality of this to health care spending parity.
* SOURCE : MCKINSEY

7. MARKET DRIVERS (CONTD.)
Salient Demographic Features that support the growth of health
insurance in India:
1) Adult literacy rate in India is 61.3% and the youth literacy rate in
India is 73.3% and is expected to rise in the future.
2) The disease rates in India is rising and it has the highest heart and
diabetes in the world and the same is expected to increase
drastically by 2015.
3) It is hone to one-sixth of the worlds population occupying less
than 3% of the worlds area.
4) The indian population will have an increase in population by
2015.

8. MARKET DRIVERS (CONTD.)
Specifically , the age group between 15-64 will experience
high growth levels. This will support the health care
insurance market to grow in tandem.
Source: Institute of economic growth.

9. MARKET RESTRAINTS
1) Inadequate health care infrastructure
2) Limited reach
3) Significant underwriting losses for Health Insurance
business in India.
4) Lack of standardization and accreditation norms in health
care industry in India.
5) Insufficient data on Indian consumers and disease patterns
resulting in difficulty in product development and pricing.
Note: The restraints are expected to decrease by the year 2015 in comparison to the current
year due to rise in economic standards and technological advancements.

10. MARKET RESTRAINTS
1) Inadequate health care infrastructure
2) Limited reach
3) Significant underwriting losses for Health Insurance
business in India.
4) Lack of standardization and accreditation norms in health
care industry in India.
5) Insufficient data on Indian consumers and disease patterns
resulting in difficulty in product development and pricing.
Note: The restraints are expected to decrease by the year 2015 in comparison to the current
year due to rise in economic standards and technological advancements.