Outlook on India’s Health Insurance in the next decade

As India strides towards becoming the third-largest global economy by 2030, the health of its citizens emerges as a pivotal factor in achieving this ambition. Dr. S Prakash, MD & CEO of Galaxy Health and Allied Insurance Co Ltd, underscores the significance of ensuring the well-being of the populace through comprehensive health insurance coverage. Reflecting […]

by Dr S Prakash - May 27, 2024, 4:22 am

As India strides towards becoming the third-largest global economy by 2030, the health of its citizens emerges as a pivotal factor in achieving this ambition. Dr. S Prakash, MD & CEO of Galaxy Health and Allied Insurance Co Ltd, underscores the significance of ensuring the well-being of the populace through comprehensive health insurance coverage.

Reflecting on the past decade, a remarkable surge in health insurance coverage in India, as evidenced by data from the National Family Health Survey (NFHS) and recent reports from PWC. Factors such as increasing life expectancy, rising per capita income, and IRDAI initiatives have fuelled this growth, albeit with greater percentage of the affordable population still uninsured.

Three key trends shaping the future of health insurance: technological advancements, personalized product offerings, and the rise of wellness programs. Leveraging AI and blockchain technology, insurers are enhancing efficiency and transparency in claims processing while tailoring products to individual needs. Additionally, wellness programs promote preventive healthcare, thereby reducing long-term morbidity related to healthcare.

Regulatory advancements further bolster the health insurance landscape. The reforms by IRDAI aim to enhance transparency and consumer protection, paving the way for increased market penetration.

However, challenges such as rising healthcare costs and accessibility persist. We emphasize the need for collaboration among stakeholders to address these challenges and unlock the sector’s full potential.

The rise of Insurtech and expansion of distribution channels have increased accessibility to insurance products, particularly in rural areas. Group policies and partnerships with financial institutions have further propelled sector growth.

To summarize, we envision a promising future for India’s health insurance sector, driven by innovation, regulatory reforms, and shifting consumer behaviours. By embracing innovation, fostering collaboration, and prioritizing inclusivity, India can build a robust and resilient Health Insurance ecosystem that can offer value to all stakeholders.

As India steps into the next decade, the ongoing transformative initiatives by our Insurance Regulator IRDAI present a chance to forge a healthier and more prosperous future for everyone.

(Note: The article has been authored by Dr. S Prakash, MS FRCS (Glasgow) MD/CEO designate at Galaxy Health and Allied Insurance.)
The author is the MD & CEO – Galaxy Health and Allied Insurance Co Ltd