The India health insurance market size in terms of Gross Written Premium (GWP), was estimated at USD 15.06 billion in 2024 and is projected to grow at a CAGR of 20.9% from 2025 to 2030. The India health insurance market size in terms of New Business Premium (NBP), was estimated at USD 9.65 billion in 2024 and is anticipated to expand at a CAGR of 21.4% from 2025 to 2030. The rising healthcare costs, increased awareness of health risks, and government initiatives aimed at expanding coverage are significantly boosting the demand for both public and private health insurance. Medical expenses in the country have been steadily increasing due to the growing prevalence of chronic diseases, the costs of advanced medical treatments, and ongoing expansions of healthcare infrastructure. The expansion of digital platforms for purchasing insurance has also made it easier for individuals to access policies, contributing to market growth. Moreover, there is a growing trend towards private health insurance as individuals seek additional coverage for services not fully reimbursed by the public system, such as alternative therapies and certain prescription drugs.
Contribution Type |
Employee Contribution |
Employer Contribution |
Description |
Income Tax (TDS) |
Progressive rates (0%-30%) |
N/A |
Withheld by employer; applicable to all employees based on income slabs. |
Employees' Provident Fund (EPF) |
12% of basic salary + dearness allowance |
12% of basic salary + dearness allowance |
Mandatory for establishments with 20 or more employees; provides retirement benefits. |
Employees' State Insurance (ESI) |
0.75% of gross salary |
3.25% of gross salary |
Applicable to employees earning up to USD 246.78/month; it provides medical and disability benefits. |
Professional Tax |
Varies by state (up to USD 29.38/year) |
N/A |
Levied by state governments, rates and applicability vary across states. |
Annual Bonus |
N/A |
8.33% to 20% of annual salary |
Mandatory for employees earning up to USD 246.78/month; governed by the Payment of Bonus Act. |
Gratuity |
N/A |
15 days' wages per year of service |
Payable to employees who have completed 5 years of continuous service governed by the Payment of Gratuity Act. |
Source: Remote Technology, Inc.
Ayushman Bharat (PM-JAY): Launched in 2018, this scheme provides health coverage of up to USD 5,875.7 per family annually, aiming to cover approximately 0.5 billion individuals. As of 2023, over 190 million e-cards have been issued, facilitating 40 million hospital admissions.
State-Level Schemes: States such as Tamil Nadu, Maharashtra, and Karnataka have implemented their own health insurance programs, collectively covering millions of additional beneficiaries. For instance, in June 2023, Tamil Nadu government introduced a new health insurance scheme for its employees and pensioners, aiming to provide comprehensive healthcare coverage. This scheme offers financial assistance for medical expenses incurred during hospitalization for various treatments and surgeries.
Regulatory Reforms: The Insurance Regulatory and Development Authority of India (IRDAI) has removed the 65-year-old age cap for purchasing health insurance policies and mandated coverage for individuals with severe medical conditions, enhancing inclusivity.
Healthcare expenses in India are escalating, particularly in private hospitals. This surge is prompting individuals to seek financial protection through health insurance to mitigate out-of-pocket expenditures. In addition, with a focus on improving access to quality healthcare, the availability of various health insurance plans and policies caters to different segments of the population, further stimulating market growth.
Furthermore, a steady growth in healthcare spending is indicating the expansion of the health insurance market.
|
2018 |
2019 |
2020 |
2021 |
2022 |
2023 |
Private healthcare expenditure (USD Billion) |
42.66 |
45.44 |
46.46 |
47.87 |
57.66 |
7.14 |
Out-of-pocket expenditure (USD Billion) |
37.22 |
39.46 |
39.60 |
41.84 |
41.58 |
25.93 |
Source: WorldoMeter
Economic stability significantly influences the expansion of the health insurance sector. As people’s disposable incomes increase, they are more inclined to purchase supplementary private health insurance policies to enhance their basic public coverage.
There is a growing trend of merging clinical care with insurance services, driven by large-scale investments aimed at building end-to-end, tech-enabled health ecosystems. For instance, in May 2025, PB Healthcare Services, a subsidiary of PB Fintech, secured USD 218 million in seed funding, led by General Catalyst. This significant investment is aimed at establishing a comprehensive healthcare platform in India, integrating care delivery and insurance service. The funds will be used to set up a 1,000-bed hospital network in the Delhi National Capital Region (NCR) and accelerate product development and technological innovation. PB Healthcare aims to create a tech-integrated care and insurance platform, enhancing patient experience and outcomes.
PB Healthcare plans to deliver cashless, integrated care through its network of hospitals, aligning insurance and treatment. The company aims to bridge gaps between payers and providers, eliminating pre-authorizations and simplifying insurance claims. Over the next 12 months, it plans to operate 4-5 hospitals with 600-800 beds
2020 |
2021 |
2022 |
2023 |
2024 |
|
Total Expenditure on Health |
499,887 |
542,221 |
570,794 |
570,343 |
612,985 |
General Government Excluding Social Security Funds |
36,654 |
36,654 |
36,654 |
36,654 |
36,654 |
Statutory Health Insurance |
275,037 |
275,037 |
275,037 |
275,037 |
275,037 |
Social Long-Term Care Insurance |
53,725 |
53,725 |
53,725 |
53,725 |
53,725 |
Statutory Pension Insurance |
5,422 |
5,422 |
5,422 |
5,422 |
5,422 |
Statutory Accident Insurance |
7,112 |
7,112 |
7,112 |
7,112 |
7,112 |
Private Health Insurance |
40,324 |
40,324 |
40,324 |
40,324 |
40,324 |
Employers |
20,407 |
20,407 |
20,407 |
20,407 |
20,407 |
Private Households/ Private Non-Profit Organisations |
61,208 |
61,208 |
61,208 |
61,208 |
61,208 |
Source: Statistisches Bundesamt (Destatis)
In addition, telematics and digital platforms have transformed how health insurance is marketed and managed. Insurers are now able to offer personalized policies based on individual behavior and risk profiles, which enhances customer engagement and satisfaction.
Digital Platforms: The proliferation of online platforms and mobile applications has simplified the process of purchasing and managing health insurance policies. For instance, ICICI Lombard emphasizes a 'phygital' model, blending physical and digital channels to optimize customer experience. Approximately 99.3% of policies are issued electronically, and the IL Take Care app has been downloaded over 5.6 million times.
Telemedicine: The integration of telemedicine services has expanded access to healthcare, especially in remote areas, and is often bundled with insurance offerings. In December 2024, Star Health Insurance launched its telemedicine service in Bhopal, expanding its reach to 64 cities across India, including five cities in Madhya Pradesh: Indore, Bhopal, Jabalpur, Gwalior, and Ujjain. The service offers customers remote access to healthcare professionals, ensuring convenience and continuity in medical consultations from home. In addition to the telemedicine service, Star Health Insurance has also launched its home healthcare service in Bhopal, which enables affordable and high-quality healthcare access from home, ensuring seamless claims processing.
AI and Machine Learning: Insurers are leveraging AI/ML for personalized underwriting, fraud detection, and enhanced customer service, improving operational efficiency. In June 2024, Star Health and Allied Insurance Company Limited launched an innovative AI-driven tool called Star Health Face Scan, designed for remote health assessment. The tool performs a comprehensive health check-up in under a minute, providing valuable real-time insights on 18 vital health parameters at the individual's convenience. With the face scan feature, individuals can effortlessly track vital parameters such as blood pressure, pulse rate, heart rate, haemoglobin levels, and stress levels. In addition, the Star Health customer app offers additional features, including a steps tracker, water intake tracker, calorie tracker, Health Risk Assessment (HRA), and health & wellness blogs.
Furthermore, according to the grand view research analysis and estimates there is a steady growth in the profitability of the health insurance market indicating further expansion.
Metric |
Overall Market Estimate |
Riders (Add-On Policies) Estimate |
Stand-Alone Policies Estimate |
Health Loss Ratio (Health Claims / Health Premiums) |
~71% |
~70% |
~82% |
Health Combined Ratio (CoR) (Health Claims + Expenses / Health Premiums) |
~96% |
~78% |
~93% |
Source: Grand View Research Estimates
Moreover, increasing launch of new products on the market to cater to the growing demand is supplementing India health insurance industry growth. Insurers are introducing specialized products, including critical illness covers, wellness programs, and family floater policies, catering to diverse consumer needs. For instance, in December 2024, Star Health introduced a new long-term retail health insurance product called 'SUPER STAR'. This plan is designed to provide comprehensive and highly customizable coverage for individuals and families. The SUPER STAR plan offers several key features, including:
Quick Shield: Immediate coverage for pre-existing conditions like Diabetes, Hypertension, and Asthma from the 31st day of the policy.[2]
Freeze Your Age: The option to lock in your age at the time of enrolment, ensuring stable premiums until a claim is made.[1]
Super Star Bonus: A guaranteed 100% cumulative bonus every year, regardless of claims, with no cap on accumulation.[2]
Unlimited Sum Insured: Offers complete financial security by eliminating caps on the sum insured, ensuring unrestricted access to healthcare when needed.[2]
Limitless Care: An add-on feature that ensures infinite financial protection for a one-time claim during the policy's lifetime.
Moreover, in October 2024, Tata AIG General Insurance introduced five innovative health insurance riders Mental Wellbeing, EmpowerHer, OPD Care, CanCare, and Flexi Shield to enhance the flexibility and comprehensiveness of its retail health insurance offerings. These riders are designed to address specific health concerns, providing policyholders with tailored coverage options.
Rider |
Focus Area |
Key Features |
Mental Wellbeing |
Mental health support |
Preventive mental health screenings, psychological therapy sessions, Rehabilitation services, emphasizing early and timely intervention. |
EmpowerHer |
Women's health |
Coverage for conditions like PCOS and infertility, preventive care options such as cervical cancer vaccinations, support for various gynecological concerns. |
OPD Care |
Outpatient services |
Coverage for doctor consultations, diagnostic tests, pharmacy bills, and vision care, addresses day-to-day health needs without hospitalization. |
CanCare |
Cancer coverage |
Financial support through a lump sum payment upon diagnosis of certain cancers, aims to alleviate the financial burden associated with cancer treatments. |
Flexi Shield |
Medical inflation protection |
Unlimited restoration of the sum insured with Restore Infinity, inflation shield to enhance sum insured against rising medical costs, additional benefits such as international second opinion and worldwide hospital cash. |
The chart below illustrates the relationship between industry concentration, industry characteristics, and industry participants. The x-axis represents the level of industry concentration, ranging from low to high. The y-axis represents various industry characteristics, including industry competition, degree of innovation, impact of regulations, level of merger & acquisition activities, and geographic expansion. The India health insurance market operate under a highly competitive and fragmented structure.The degree of innovation is moderate, and the impact of regulations on industry is high. The level of partnership & acquisition activities is moderate, and geographic expansion of the industry is high.
The degree of innovation in India health insurance market is significantly moderate, driven by digitalization, regulatory reforms, and personalized healthcare solutions. For instance, in June 2024, HDFC ERGO in partnership with Truecaller launched Fraud Insurance, a new initiative designed to protect users from digital communication frauds in India. The partnership aims to empower users with enhanced protection against the rising threat of digital communication frauds.
Several key market players are devising business growth strategies in the form of mergers and acquisitions. Through M&A activity, these companies can expand their business geographies. In March 2025, Prudential, a UK-based insurer, announced a joint venture with Vama Sundari Investments, a promoter entity of the HCL Group, to establish a standalone health insurance company in India. The merger aims to enhance access to quality health insurance and drive greater penetration across the country.
The regulatory landscape in India has a significant impact on the health insurance market, mainly through frameworks aimed at enhancing consumer protection and ensuring the financial stability of insurers. The sector operates under a robust regulatory framework established by the Insurance Regulatory and Development Authority of India (IRDAI). The IRDAI, constituted under the Insurance Regulatory and Development Authority Act, 1999, plays a pivotal role in ensuring the orderly growth of the insurance industry, protecting policyholder interests, and fostering financial stability. In addition, The IRDAI continues to promote product standardization to improve transparency and comparability for consumers. Standard products like Arogya Sanjeevani and Corona Kavach remain in force as entry-level offerings with uniform features across insurers.
Insurance providers are increasingly diversifying their offerings to cater to different customer segments, including expatriates, freelancers, self-employed individuals, and corporate employees. Moreover, insurers are also leveraging data analytics and artificial intelligence to refine their offerings, allowing for more personalized insurance solutions that cater to the unique circumstances of policyholders.
Several market players are expanding their business by entering new geographical regions to strengthen their market position and expand their product portfolio. In January 2025, Galaxy Health Insurance announced its plans to expand its operations across India within the next two to three years. The insurer plans to launch at least one new product every month to cater to different customer segments. Galaxy Health Insurance has already launched a product called Galaxy Promise across three variants: Signature, Elite, and Premier. The company aims to target younger demographics with unique features, such as a premium that remains the same until age 55 if no claims are made.
The private segment dominated the market in 2024 and accounted for the largest revenue share of 65.94% in 2024 and is anticipated to the fastest growth over the forecast period.
India's private health insurance sector plays a crucial role in providing financial protection against health-related expenses for individuals, corporations, and groups. It comprises a diverse range of entities, including privately-owned general insurers such as ICICI Lombard and Bajaj Allianz, as well as standalone health insurers like Aditya Birla and Niva Bupa. Additionally, private life insurance companies, including HDFC Life and SBI Life, also offer health insurance products as part of their portfolios. This segment thrives as it collects premiums directly from policyholders or sponsoring organizations, ensuring that customers have access to a variety of health coverage options tailored to their specific needs. The growing awareness of healthcare costs and the increasing demand for quality medical services are driving the expansion of private health insurance, making it an essential component of India’s healthcare landscape.
In addition, companies are offering various attractive insurance products to acquire larger audience.
For instance, below is the product offered by Star Health & Allied Insurance Co. Ltd., a private insurer:
Product/Service |
Coverage Details |
Average Premium (USD) |
Target Client |
Super Star |
|
USD 0.18/day |
Any person aged 18 years and above can avail this policy. |
Moreover, government initiatives promoting personal wellness contribute to an environment where private health insurance becomes increasingly relevant. This combination of factors is expected to sustain robust growth in the private health insurance sector.
Public segment in India health insurance industry is anticipated to a significant growth over the forecast period. Public health insurance in India plays a crucial role in providing financial protection to individuals and families against healthcare costs. It encompasses government-owned insurers that collect premiums from individuals and groups, often through state-sponsored schemes. These state-owned companies, such as National Insurance Co. Ltd., The New India Assurance Co. Ltd., The Oriental Insurance Co. Ltd., and United India Insurance Co. Ltd., operate within the commercial insurance market to offer affordable health coverage. In addition, the Life Insurance Corporation of India (LIC), a key player in this segment, provides health insurance products as part of its life insurance offerings. By expanding access to health insurance, particularly through riders that enhance life insurance policies, public health insurance in India aims to ensure that a larger segment of the population can afford necessary medical care, thereby improving overall health outcomes and reducing the financial burden on households.
The corporate policy segment dominated the market in 2024 and accounted for the largest revenue share of 71.21% and is expected to grow at a fastest CAGR over the forecast period. This growth is driven by several key factors, including increasing regulatory requirements, heightened awareness of workplace safety, and the rising costs associated with employee benefits. In addition, the increasing focus on employee well-being has led organizations to prioritize health insurance as part of their overall employee benefits package. Companies recognize that providing adequate coverage protects employees and enhances job satisfaction and retention rates. Furthermore, the rising costs of healthcare and compensation claims have prompted businesses to seek more effective risk management strategies through corporate health insurance policies.
Retail policy segment in India is anticipated to register a significant growth over the forecast period, driven by the growing regulatory changes shaping the health insurance landscape. The government of India has implemented stricter regulations mandating certain types of coverage, increasing compliance rates, and expanding the retail policies' customer base. Introducing innovative insurance products tailored to meet consumer needs, such as customizable plans and usage-based pricing models, has also contributed to market expansion. Furthermore, demographic shifts, including an aging population and urbanization trends, influence the demand for health insurance. Older individuals seek more excellent protection due to health concerns and increased vulnerability to health.
The brokers/independent advisors segment dominated the market in 2024. The industry's digital transformation drives the growth of brokers and independent advisors as brokers increasingly adopt technology to enhance customer engagement and streamline operations. This includes utilizing online platforms for policy comparisons and claims processing, which improves accessibility for clients. Furthermore, as the demand for comprehensive health coverage rises due to changing lifestyles and increased mobility, brokers are well-positioned to offer specialized services that meet these evolving needs. These drivers contribute to a robust growth trajectory for brokers in India's health insurance market.
Corporate Agents segment is anticipated to register a fastest growth over the forecast period. Corporate agents are banks, financial institutions, or other organizations that sell insurance products on behalf of insurance companies. In India, corporate agents have been instrumental in expanding the reach of health insurance products. For instance, the partnership of Bajaj Allianz Life Insurance and City Union Bank allows the private life insurer to collaborate with the bank to provide a diverse range of life insurance solutions to its customers across 727 branches. Moreover, the growth of corporate agents in the India health insurance market is also driven by government initiatives and regulatory changes. The Insurance Regulatory and Development Authority of India (IRDAI) has been promoting the use of corporate agents to increase insurance penetration in the country. In addition, the government's push for financial inclusion and digitalization has created opportunities for corporate agents to expand their reach.
The private health insurance sector is considerably fragmented. Notable insurers in this segment include Star Health & Allied Insurance Co. Ltd., one of the world's largest insurance groups, offering diverse and comprehensive accident insurance products tailored to various customer segments. ICICI Lombard General Insurance Co. Ltd. leading player holds a substantial market share primarily among civil servants and high-income individuals. Other prominent private insurers, including Bajaj Allianz General Insurance Co. Ltd., and Care Health Insurance Ltd. all competing by offering flexible, personalized coverage and enhanced customer experience
In March 2025, Prudential Group Holdings (UK) and Vama Sundari Investments (Delhi) Private Limited, an HCL Group promoter company, announced to enter a joint venture to launch a standalone health insurance business in India. This strategic move aims to capitalize on India's rapidly growing health insurance market and contribute to the Indian government's vision of "Insurance for All by 2047".
In February 2025, Bajaj Allianz's launched HERizon Care, a comprehensive health insurance plan specifically designed for women. It is notable for being the first health insurance plan in India to integrate multiple specialized benefits tailored to women's unique healthcare needs within a single policy. HERizon Care is structured around two primary covers:Vita Shield and Cradle Care.
In August 2024, ICICI Lombard partnered with seven institutions to enhance its distribution network. The partnership aims to increase the company's reach and provide insurance products to a wider audience. This partnership is likely to have a positive impact on ICICI Lombard's business, enabling the company to expand its customer base and increase its market share in the insurance industry.
Report Attribute |
Details |
Revenue forecast in 2030 |
USD 46.37 billion |
Growth rate |
CAGR of 20.9% from 2025 to 2030 |
Actual data |
2018 - 2024 |
Forecast data |
2025 - 2030 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2025 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Insurance type, policy type, and distribution channel |
Country scope |
India |
Key companies profiled |
ICICI Lombard General Insurance Co. Ltd.; Bajaj Allianz; General Insurance Co. Ltd.; HDFC ERGO General Insurance Co. Ltd.; Star Health & Allied Insurance Co. Ltd.; Care Health Insurance Ltd.; Future Generali India Insurance Company Ltd.; Adiya Birla Capital Ltd.; Niva Bupa Health Insurance Company Ltd; New India Assurance Co. Ltd.; Bharti AXA Life Insurance Company Limited; United India Insurance Co. Ltd.; National Insurance Company Ltd. |
Customization scope |
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Pricing and purchase options |
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Report Attribute |
Details |
Revenue forecast in 2030 |
USD 30.51 billion |
Growth Rate |
CAGR of 21.4% from 2025 to 2030 |
Actual data |
2018 - 2024 |
Forecast data |
2025 - 2030 |
Quantitative units |
Revenue in USD million/billion and CAGR from 2025 to 2030 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Insurance Type |
Country scope |
India |
Key companies profiled |
ICICI Lombard General Insurance Co. Ltd.; Bajaj Allianz; General Insurance Co. Ltd.; HDFC ERGO General Insurance Co. Ltd.; Star Health & Allied Insurance Co. Ltd.; Care Health Insurance Ltd.; Future Generali India Insurance Company Ltd.; Adiya Birla Capital Ltd.; Niva Bupa Health Insurance Company Ltd; New India Assurance Co. Ltd.; Bharti AXA Life Insurance Company Limited; United India Insurance Co. Ltd.; National Insurance Company Ltd. |
Customization scope |
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Pricing and purchase options |
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This report forecasts revenue and volume growth at country level and provides an analysis on industry trends in each of the sub segments from 2018 to 2030. For this study, Grand View Research, Inc. has segmented the India health insurance market report based on insurance type, policy type, and distribution channel:
Insurance Type Outlook (Revenue, USD Billion, 2018 - 2030)
India Health Insurance Market {Gross Written Premiums (GWP)}
Public
By Policy Type
Corporate Policy
Retail Policy
By Distribution Channel
Individual Agents
Corporate Agents
Brokers
Direct Sale
Others
Private
By Policy Type
Corporate Policy
Retail Policy
By Distribution Channel
Individual Agents
Corporate Agents
Brokers
Direct Sale
Others
India Health Insurance Market {New Business Premiums (NBP)}
Public
Private
India Health Insurance Market (GWP) Policy Type Outlook (Revenue, USD Billion, 2018 - 2030)
Corporate Policy
Retail Policy
India Health Insurance Market (GWP) Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)
Traditional Distribution Channels
Digital/Online Distribution Channels
b. The India health insurance market size was estimated at USD 15.06 billion in 2024.
b. The India health insurance market is expected to grow at a compound annual growth rate of 20.87% from 2025 to 2030 to reach USD 46.37 billion by 2030.
b. The private segment dominated the market in 2024 and accounted for the largest revenue share of 65.94% in 2024. The growing awareness of healthcare costs and the increasing demand for quality medical services are driving the expansion of private health insurance, making it an essential component of India’s healthcare landscape.
b. Some key players operating in the India health insurance market include ICICI Lombard General Insurance Co. Ltd., Bajaj Allianz, General Insurance Co. Ltd., HDFC ERGO General Insurance Co. Ltd., Star Health & Allied Insurance Co. Ltd., Care Health Insurance Ltd., Future Generali India Insurance Company Ltd., Adiya Birla Capital Ltd.
b. Key factors that are driving the market growth include the rising costs of high-quality healthcare and the rising demand for it as a result of rising income levels, longer life expectancies, and an epidemiological change towards no communicable diseases.
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