New Delhi [India], December 12 : Health insurance in India saw significant growth in recent years, its share in the non-life insurance segment surged to 37.1 in FY24 per cent from 24.6 per cent, according to a report by Axis Securities.
The report also highlighted the increasing penetration of health insurance in the country, supported by rising awareness and government initiatives.
"A key driver behind this growth is the rising insurance penetration, which has increased from 3.7 per cent to 4 per cent in FY23. Additionally, the share of health insurance in the non-life insurance segment has risen from 24.6 per cent in FY18 to 37.1 per cent in FY24." said the report
With rising growth in the segment premium collections are also growing rapidly. Overall, the insurance sector in India has seen a growth of 21 per cent in premium collections over recent years and is expected to expand further at a CAGR of 15 per cent.
"Insurance premium collections in India have grown by 21 per cent over recent years and are projected to expand at a 15 per cent CAGR". Said the report
The report said that health insurance premium collections currently stand at Rs 1,078 billion and are projected to reach approximately Rs 1,900 billion by FY27, growing at a compound annual growth rate (CAGR) of 18 per cent.
Additionally, the industry's return on invested capital (ROIC) is projected to reach 21 per cent by FY27, marking an improvement of 400 basis points. The report stated that the health insurance segment is benefiting from healthy cash flow and operational efficiency, according to the report.
The report also noted that government's increased focus on healthcare infrastructure is another major contributor to the sector's growth. Efforts are underway to address a shortage of 2.4 million hospital beds by raising healthcare expenditure to 2.5 per cent of GDP by 2025.
Public-private partnerships, particularly in rural areas, are also being expanded to bridge healthcare accessibility gaps.
India's healthcare industry is poised for remarkable growth, with its current market size of Rs 38,000 crore expected to reach Rs 66,500 crore by FY27, reflecting a strong CAGR of 19 per cent.
The report underscores the strong potential of India's health insurance and healthcare industries, driven by rising awareness, supportive government policies, and growing investments in the sector.
With a focus on closing gaps in infrastructure and services, the industry is well-positioned for sustained growth in the coming years.