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Driven by Modicare, health insurance segment sees 22% premium growth

A total of Rs 3,456.68 crore has been collected as premium in the government health schemes’ business in the April 2018 to February 2019 period.

March 28, 2019 / 06:12 PM IST

The health insurance portfolio of general insurers in India rose to Rs 40,048.47 crore in the April 2018 to February 2019 period driven by a 38 percent jump in government-sponsored health insurance (especially Pradhan Mantri Jan Arogya Yojana). Data from the General Insurance Council showed there was a 22 percent growth in the gross premium income from this segment.

In the general insurance segment, the standalone health insurers saw a faster rate of growth than the others with a 39.4 percent YoY growth in premium at Rs 9,132.34 crore. The non-life industry collected gross premiums of Rs 1.52 lakh crore in the April to February period.

Under PMJAY, also referred to as Modicare, about 500 million Indians will get a health insurance cover of Rs five lakh completely free of cost. This includes families from lower income groups that fall under the socio-economic caste census (SECC) data of 2011. This scheme was launched in September 2018.

Health Insurance Mix

Infographics by Ritesh Presswala

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A total of Rs 3,456.68 crore has been collected as premium in the government health schemes’ business, a majority of which would come from Modicare. This segment held 8.63 percent market share compared to 7.63 percent in the year ago period.

Group health dominates health segment

Under the health insurance segment, group health is the largest portion in terms of the premium collected in this period. Data showed that non-life insurers collected Rs 20,017.99 crore premium showing a 25.9 percent YoY increase. This segment held a 50 percent market share in health insurance, with the rest being divided between retail (39.1 percent) and government schemes (8.63 percent).

Among the insurers, New India Assurance is the largest player in the health insurance segment followed by United India, National Insurance, Star Health and Oriental Insurance. When it comes to the private sector, ICICI Lombard tops the list in health premium collection.

Top 10 Health Insurance

Infographics by Ritesh Presswala

The group health insurance segment has also seen a rise in premium due to the hike in rates applicable to corporate customers. Due to a rise in claims, group health premium payable by companies was hiked by 15-20 percent in 2019.

The second largest segment in health insurance is the retail portfolio. Here, insurers collected gross premium of Rs 15,823.28 crore in the April to February period. However, retail health saw a drop in its market share in this period from 42 percent last year.



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M Saraswathy
first published: Mar 28, 2019 06:12 pm
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ISO 27001 - BSI Assurance Mark