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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
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
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)
131170
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
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
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
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Identification
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Contact
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RNCOS
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