India Health Insurance Market Worth $30,291.2 Million By 2030

March 2023 | Report Format: Electronic (PDF)

India Health Insurance Market Growth & Trends

The India health insurance market size is anticipated to reach USD 30,291.2 million by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 11.55% from 2023 to 2030. Strong distribution channels, democratic factors, various government programs, and a favorable regulatory environment are some of the factors driving the growth. The Indian economy's health insurance sector is expanding. With approximately 1.3 billion potential beneficiaries, the Indian healthcare system is among the biggest in the world.

Low penetration, along with a COVID-19-led increase in awareness, rising disposable income, product innovation, etc. are some of the key drivers for growth in the retail health segment, where coverage is anticipated to reach about 250 million individuals. As per an independent survey by NITI Aayog, only 18% of individuals in urban areas and 14% in rural regions in India are covered by any type of health insurance plan, making it one of the countries with the lowest health insurance penetration rates in the world. The data shows that it stands at 0.4% in the country compared to 4.1% in the U.S. and 2.7% in France.

Government initiatives and financial inclusion programs are likely to have helped in propelling adoption and penetration across all segments. The Indian government is introducing several schemes, such as the Ayushman Bharat Yojana, Pradhan Mantri Jan Aarogya Yojana (PM-JAY), Aam Aadmi Bima Yojana (AABY), and Pradhan Mantri Suraksha Bima Yojana to offer health insurance to the economically weaker sections of the nation.

Furthermore, key entities in the Indian health insurance industry undertake various strategic initiatives such as partnerships, new policies, and mergers & acquisitions to expand and adoption of their insurance policies in the country. For instance, in July 2022, Star Health and Allied Insurance entered into a partnership with Common Services Centers to offer more than 5 lakh CSCs access to a number of Star Health insurance products.

This partnership intends to broaden access to health insurance in rural India.Star Health is expected to simultaneously increase its market share and consolidate its position across the nation with the help of the new distribution network. Moreover, in August 2022, Abu Dhabi Investment Authority (ADIA) invested USD 80.5 million (Rs 665 cr) in Aditya Birla Health Insurance for a 9.99% stake. Such initiatives are expected to propel market growth in the country.

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India Health Insurance Market Report Highlights

  • In 2022, the brokers and individual agents distribution channel segment held the highest revenue share, with over 59.30% and 32.23%. This is attributed due the majority of health insurance policies in the country being sold in-person or through middlemen

  • The direct sales distribution channel segment is expected to hold a significant market share owing to direct sales allow health insurance entities to sell their insurance without the interference of an intermediary

  • Private sector insurers are expected to hold a significant share in the insurance type segment over the forecast period owing to an increase in private health insurers entering the market to offer specialized healthcare coverage and high-quality services

  • Life-time coverage dominated the market and accounted for the largest revenue share of over 55.49% in 2022. The lifetime coverage allows customers to continue receiving insurance without having to apply for a new policy

  • Term life insurance is expected to grow at a CAGR of 12.97% during the forecast year. This is attributed due to the term life insurance being more affordable than other types of health insurance policies

  • Maharashtra state dominated the market with a revenue share of 29.00% in 2022.In India, Maharashtra accounts for the largest percentage of insurance premiums

  • Key players include Star Health and Allied Insurance Co Ltd., Aditya Birla Group, Niva Bupa Health Insurance Company Limited, Bajaj Allianz Health Insurance, Bharti AXA Life Insurance, New India Insurance, and United India

India Health Insurance Market Segmentation

Grand View Research has segmented the India health insurance market based on duration, type of insurance, distribution channels,customer type, and state:

India Health Insurance Duration Outlook (Revenue, Million, 2018 - 2030)

  • Life-Time Coverage

  • Term Insurance

India Health Insurance Type of Insurance Provider Outlook (Revenue, Million, 2018 - 2030)

  • Public Sector Insurers

  • Private Sector Insurers

  • Standalone Health Insurance Companies

India Health Insurance Distribution Channels Outlook (Revenue, Million, 2018 - 2030)

  • Direct Sales

  • Brokers and Individual Agents

  • Bankers

  • Others

India Health Insurance Customer Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Individuals

  • Corporate houses/Business Units

  • Others

India Health Insurance State Outlook (Revenue, USD Million, 2018 - 2030)

  • Maharashtra

  • Tamil Nadu

  • Karnataka

  • Delhi

  • Gujrat

  • Rest of state

List of Key Players in the India Health Insurance Market

  • Star Health and Allied Insurance Co Ltd.

  • Aditya Birla Group

  • Niva Bupa Health Insurance Company Limited

  • Bajaj Allianz Health Insurance

  • Bharti AXA Life Insurance

  • New India Insurance

  • United India

  • ICICI Lombard

  • National Insurance Company

  • Tata AIG General Insurance Company Limited

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