The health insurance industry grew at about 16% in 2015, which is more than twice the rate at which India’s gross domestic product (GDP) is growing. The industry has seen year-on-year growth of more than 27% in direct premium collections. These numbers indicate that the foundation has been laid to make 2016 a year of inflection.
The robust growth can be attributed to a variety of factors. The category per se has expanded with new companies coming in, new products being launched and the distribution network being expanded. However, there are also several catalysts at work, which have imparted momentum to the industry. The most important among these would include: a) increasing awareness among consumers; b) increasing disease burden on the society and the government; c) availability of technology to enable access and improve experience; and d) regulatory fillip.
