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The health insurance industry in India has experienced rapid growth in recent years. This can be partly attributed to the rising medical costs and increasing incidence of diseases. In addition, the COVID-19 pandemic has further enhanced the demand for insurance products by raising public awareness of health issues. It is a positive development as obtaining an insurance policy protects people from financial distress during a medical crisis.
Moreover, obtaining the best health insurance scheme allows buyers to access quality healthcare and to enjoy tax deductions under Income Tax Act’s section 80D. This article will explore why the health insurance industry is growing and discuss the key trends shaping the sector.
Reasons for the Growth of the Health Insurance Sector
With the growing awareness about the importance of insurance, more and more people are buying insurance policies to safeguard themselves and their families against unforeseen events. Other factors supporting the health insurance industry in India are as follows.
Demographics
More than 50% of the Indian population falls in the working age group. Insurance turns out to be more affordable for the younger population as compared to senior citizen health insurance. They can get insured at lower premiums, as the risk to the insurance company is low. Additionally, they are more willing to use cutting-edge products. India also has a growing middle class, which has greater income levels and can afford the mediclaim premiums.
Urbanisation
Urbanisation in India has led to an increase in the demand for insurance products. As people become more urbanised, they tend to adopt insurance to protect their assets and secure their future. Urban people are also more inclined towards their health and well-being.
Collaborations
India’s insurance sector has witnessed many partnerships and collaborations between local and international players. This has helped bring in new technologies, products, and expertise, contributing to the sector’s growth.
Government Initiatives
The Indian government has introduced several initiatives to support the growth of the health insurance sector in the country. For example, it has launched the Pradhan Mantri Jan Arogya Yojana, which provides health insurance coverage to underserved segments of the population.
Private Sector Participation
Insurance in India was initially offered by the government only. Lately, private-sector insurance companies have become more active, offering a wider range of products and driving growth in the sector. As competition increases and more options become available, consumers are more likely to purchase health insurance coverage.
Trends Shaping the Health Insurance Sector
The health insurance industry in India is undergoing a digital transformation, with companies leveraging technology to improve customer experience and streamline operations. Here are some trends that are shaping the sector.
Preventive Care
Insurance companies are increasingly focusing on preventive care, with many offering policies that cover regular health check-ups and screenings.
Personalised Products
Insurers are using data analytics and machine learning to offer personalised health insurance products that are tailored to the specific needs of individual customers.
Microinsurance
There is a growing focus on offering health insurance products to underserved and low-income population segments through microinsurance.
Mental Healthcare
Insurers are now covering mental health care services such as professional consultation and access to meditation applications to offer comprehensive insurance packages.
Partnerships
Insurance companies in India are focusing on expanding their distribution channels, including partnering with banks, brokers, fintech companies, and other intermediaries to reach a wider customer base.
Conclusion
Due to the progress of the insurance sector in India, numerous mediclaim plans have been introduced in the market. To select the best health insurance scheme in India, users must thoroughly investigate different insurers based on parameters like sum insured, premium, claim settlement ratio, renewability clause, etc. You can learn the step-by-step process of buying health insurance from any online health insurance guide.