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With about 24 per cent growth in the current financial year, health insurance is now driving the non-life insurance business.
The trend has become more visible in recent years, thanks to the awareness Covid-19 has generated, a senior official of the Insurance Regulatory and Development Authority of India (IRDAI) told businessline.
“The upcoming unified digital platform for all insurance needs, Bima Sugam, will make health cover more transparent and accessible, which will further augment the reach of health cover,’‘ the official said.
There has been a significant rise in the contribution of health insurance coverto overall non-life insurance. For instance, in FY22, the proportion of healthlines in business was 34 per cent, and at the end of the third quarter of the current financial year, it reached 38 per cent, as per the latest data.
Among various segments under the non-life insurance business, the health insurance business is the largest segment, with a contribution of 38.02 per cent (36.48 per cent in 2021-22) of the total premium. The health insurance segment reported growth of 21.32 per cent (26.27 per cent growth in 2021-22) with the premium amounting to ₹97,633 crore from ₹80,502 crore in 2021-22.
Motor segment
The motor segment witnessed a year-on-year growth of 15.40 per cent, with premium collection amounting to ₹81,280 crore in 2022-23 from ₹70,433 crore in 2021-22.
“The surge in demand for health coverage in India over the past year has prompted insurers to introduce tailored products, leverage digital platforms for accessibility, and expand their healthcare provider networks,’‘ Ritesh Kumar, MD & CEO, HDFC ERGO General Insurance, told businessline.
The industry is undergoing a significant digital transformation, with platforms and mobile apps enhancing policyholders’ convenience in purchasing, claiming, and accessing essential information, he added.
With a heightened focus on health and well-being, there is an increasing demand for comprehensive health and wellness insurance solutions, including OPD insurance covers, according to industry sources.
Underwriting premium
During 2022-23, the non-life insurance industry underwrote a total direct premium of ₹2.57-lakh crore in India, registering a growth of 16.40 per cent from the previous year. Out of which, 27 private sector insurers (including standalone health insurers) have underwritten ₹1.58-lakh crore as against ₹1.30-lakh crore in 2021-22.
The specialised insurers underwrote a gross direct premium amounting to ₹15,818 crore. The public sector general insurers together contributed 38.42 per cent of the market share, while the private sector general insurers contributed the remaining 61.58 per cent.
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