But individual agents have only a 32% share in industry’s total health insurance premium collection.
Seven out of 10 health insurance policies are sold by individual agents, shows a recent report published by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
However, in term of premium collection, direct channel has a highest share of 37% followed by individual agents and brokers with 32% and 21% respectively. The study pointed out that business from referrals constitute only a meager 0.1% both in terms of number of policies sold and share in insurance premium.
The study also found that private insurers overtook public insurers in terms of sale of total number of policies. It shows that 65% of total health insurance policies are sold by private insurers. However, in terms of premium collection, public insurers account for a share of 61%.
In a press release, DS Rawat, Secretary General, ASSOCHAM said, “Private voluntary health insurance will continue to grow in terms of covering the non-vulnerable, the middle class and higher income segments of the population that can afford to purchase private health insurance.”
He also said, “The general insurance industry would need to ensure that they are able to reach out to the various customer segments in order to capitalise on economic growth and increasing penetration. Going forward, building distinctive distribution capabilities, both in terms of new, underpenetrated channels (e.g., bancassurance) and developing new models for existing channels (e.g., brokers) will be key to driving growth and profitability in the insurance sector.”
Assocham suggested that the priorities for government for healthcare financing must be such that it covers the basic objectives of affordability, reach and quality of services.
In
its study, the industry body has called for an alternative cost sharing
mechanism through pooling of health care burden so that all sections of the society
are able to afford healthcare services.