Health insurance segment to cross Rs 1-trillion mark in FY24

The health insurance segment is on track to cross the Rs 1-trillion mark during the current financial year as the total premium already crossed Rs 90,000 crore in the previous fiscal.

Total premium rose to Rs 90,667.7 crore in the last fiscal, from Rs 73,598 crore in FY22. Total health premium had stood at Rs 58,684.2 crore in FY21, according to CareEdge Ratings.

CareEdge, in a note, said health insurance premiums have been the primary growth lever of the non-life insurance industry. “This has resulted in the segment increasing its market share from 29.5% for FY21 to 35.3% for FY23. The health segment has grown by 23.2% for FY23, which is lower than the growth of 25.4% witnessed for FY22,” the rating agency said.

“This is because of the Covid, which has been the game changer for the health insurance business. Before Covid, motor insurance was the leading portfolio. But now, everyone becomes health conscious, and it looks like health insurance will continuously be the leader in the non-life insurance sector,” Anil Kumar Aggarwal, MD & CEO, Shriram General Insurance, told.

The group health segment has witnessed growth primarily due to the rationalisation of discounts in premiums.

“Standalone health insurance companies’ focus is on retail, while general insurers account for a dominant share of group. The FY23 premium growth of the SAHI continues to be higher than the industry average. This has led to an SAHI holding 28.9% of the health insurance market (increasing their share from 26.8% in FY21). Interestingly, private players and SAHI have a similar share in FY23, while public peers have grown at a slower pace,” CareEdge said.