Top Health Insurance Statistics Of 2023
Do we really care about our health insurance coverage until something unfortunate happens to us or anyone in our family? Do we really acknowledge the importance of a health insurance policy and how it can save us against medical emergencies which could otherwise drain all our finances?
Forbes
Advisor India has collated most up-to-date statistics and facts on health
insurance in India which reveals a lot about this $12.86 billion industry.
Overview:
The Healthcare System in India
Healthcare
is one of the largest sectors of the Indian economy, in terms of both
generation of revenue and employment. The overall healthcare sector is rising
at a pace due to its growing coverage, better services, and increasing
expenditure by public as well private players. Even under the Union Budget
2023-24, the Ministry of Health and Family Welfare has been allocated INR
89,155 crore, a surge of 3.43% compared to INR 86,200.65 crore in 2021-22.
Health
insurance and healthcare are often used interchangeably. If we closely look at
the different segments of the Indian healthcare sector, then apart from,
hospitals, medical devices, equipment, clinical trials and telemedicine and
medical tourism, health insurance forms a major part as it helps in providing coverage
for the medical services.
Segments of
Indian Healthcare Sector
Yet, India
has a very decentralized approach when it comes to penetration of health
insurance across the country. It is still optional in India to have a health
insurance policy for themselves and for their entire family. With such low
penetration of health insurance coverage, still a larger section of the society
ends up spending a significant amount of their savings on rising healthcare
services as they are not insured enough.
Furthermore,
India’s healthcare delivery system is categorized into two major components –
public and private. So, on paper, every Indian is eligible for free healthcare
services but only at government facilities under the public healthcare system
of India.
But the
question arises, are Indians keen on buying health insurance from private
players or find free government schemes more trustworthy and
cost-effective.
Let’s have a
look at how Indians have been covered under health insurance as per the
research data and numbers.
Health
Insurance Statistics at a Glance
The health
insurance market in India is growing but the overall distribution of health
insurance policies in India is not leveled up evenly. Moreover, the public
healthcare system is critically facing the issues of insufficient and
inadequate funding, thus, the best option which remains for the Indians is the
private health insurance players which outplays the health insurance market.
The majority of the population seek insurance coverage from the private players
because of better and prompt services. Let’s closely look at the statistics:
Health
Insurance Coverage-Related Statistics
Approximately
514 million people across India were covered under health insurance schemes in
2021, which merely covers 37% of the people in the country.
Nearly 400
million individuals in India have zero access to health insurance.
Around 70%
of the population is estimated to be covered under public health insurance or
voluntarily private health insurance. The remaining 30% of the population –over
40 crore individuals, devoid of health insurance.
Health
Insurance Premium-Related Statistics
The gross
written premium of the Indian health insurance industry was valued at over INR
637 billion in 2021.
Public
sector health insurers recorded insurance premiums worth INR 272 billion,
private sector health insurers accounted for premiums nearly INR 159 billion,
whereas standalone health insurers recorded around INR 151 billion across
India.
In 2021, the
state of Maharashtra recorded the principal share of health insurance premiums
across India. At 32%, the south-western state accounted for health insurance
premiums worth over INR 183 billion. Tamil Nadu and Karnataka followed at ten
percent that year.
Gross
Premium Collection of Health Insurance in INR Cr.
|
FY15 |
20,096 |
|
FY16 |
24,498 |
|
FY17 |
30,392 |
|
FY18 |
37,029 |
|
FY19 |
45,532 |
|
FY20 |
50,752 |
|
FY 21 |
58,237 |
|
(Source:
IRDAI Annual Report) |
|
Health
Insurance Cost-Related Statistics
As per the
Economic Survey 2022-23, the Indian governments’ budgeted expenditure on
healthcare nearly touched 2.1 % of GDP in FY23 and 2.2% in FY22, against 1.6%
in FY21.
The same
survey revealed that the rise in the share of expenditure on healthcare
services has increased from 21% in FY19 to 26 % in FY23.
In fiscal
year 2019, nearly 48% of the total healthcare spending in India was done from
out-of-pocket payments. This figure has been declined substantially from 64.2
which was witnessed in FY14. [x]
Social
security cost on health increases from 6% in FY14 to 9.6% in FY19.
Health
Insurance Statistics by State
Health
insurance coverage in India is far from satisfactory. According to data fetched
from the National Family Health Survey India report, over
two-fifths (41%) of households have at least one usual member covered under
health insurance. Where, only 30% of women aged 15-49 and 33% of men aged 15-49
are covered by health insurance or financing schemes between 2019-2021.
Almost half
(46%) of those with insurance are covered by a state health insurance scheme
and about one-sixth (16%) are covered by Rashtriya Swasthya Bima Yojana (RSBY).
Almost 3-6% of women and 4-7% of men are covered by the Employee State
Insurance Scheme (ESIS) or the Central Government Health Scheme (CGHS). The
highest proportion of households covered under health insurance or financing
schemes is found in Rajasthan (88%) and Andhra Pradesh (80%), and the lowest
coverage (less than 15%) is in the Andaman & Nicobar Islands and Jammu
& Kashmir.
Let’s dig
deeper to understand how the health insurance coverage has been spreaded in the
largest 19 states of India.
|
State |
% of
families with at least 1 member covered under a Health Insurance |
|
Rajasthan |
88% |
|
Andhra
Pradesh |
80% |
|
Goa |
73% |
|
Chhattisgarh |
71% |
|
Telangana |
69% |
|
Assam |
67% |
|
Kerala |
58% |
|
Mizoram |
50% |
|
Gujarat |
44% |
|
Himachal
Pradesh |
39% |
|
Tripura |
36% |
|
West
Bengal |
34% |
|
Karnataka |
32% |
|
Sikkim |
28% |
|
Delhi |
25% |
|
Nagaland |
22% |
|
Maharashtra |
22% |
|
Bihar |
17% |
|
Jammu and
Kashmir |
14% |
|
(Source: NFHS
India Report 2019-2021) |
|
Employer-Sponsored
Health Insurance Statistics
Employer-sponsored
health insurance is also known as corporate health insurance or group health
insurance which is generally provided by the employer of the company or a
particular group to its employers.
As per the
Health Trend report shared by world’s leading insurance broker and risk
advisor, Mercer Marsh, the cost of employer-sponsored medical benefits in India
was expected to rise by 15% in 2022.
The Health
Trends report surveyed almost 210 insurers around the world, including 74 in
Asia, to identify significant trends that will shape the future of
employer-provided medical coverage.
The same
reports show that five countries in Asia including India have higher medical
trend rates. India had the highest medical inflation rate of 14%, followed by
China (12%), Indonesia (10%), Vietnam (10%), and the Philippines (9%).
A progress
seen in employer-sponsored health insurance simply means that the large number
of workers or employees have been covered in the country under a health
insurance coverage which tends to provide them with safety and security at the
hour of need.
Why Does
India Need Better Health Insurance Coverage?
India is a
home to many lifestyle diseases such as heart strokes, diabetes and many
respiratory diseases. All these ailments are very much treatable in India but
treatment costs is sky-rocketing, thanks to advancements in medical research
and use of sophisticated medical tools.
In India,
nearly 5.8 million die from non-communicable diseases (NCDs) every year. The
MMB Health Trends report reveals that cancer (55%), circulatory system-based
diseases (43%), and Covid-19 (36%) were the top cost drivers of medical claims
in Asia in 2021. Out of them, respiratory diseases (47%), gastrointestinal
diseases (36%) and Covid-19 (34%) experienced the most frequent claims.
As per the
CMIE-CPHS report, Indian households spent more than INR 120 billion on
healthcare and medical related services in FY 2022.
As per the
recent data fetched from Niti Aayog Report, the existing health insurance
schemes are able to potentially cover only 95 crores individuals in India.
These schemes consist of government subsidized schemes, social health insurance
schemes, and private insurance schemes.
Due to the
increase in lifestyle changes and rising healthcare costs, purchasing health
insurance coverage becomes more of a necessity than a luxury. In such a
scenario, health insurance policies are an excellent choice in preparing for
such circumstances.
A health
insurance ensures regular monitoring of your, provides cashless coverage, and
offers the best treatment facilities at their best networked hospitals. A
comprehensive insurance policy would also cover critical illness insurance,
personal accident insurance and all the pre-existing health conditions such as
blood pressure, diabetes, asthma, etc.
Forbes Advisor
India believes in the importance of investing in a health insurance policy as
early as you start earning. Start early, compare other plans and get the best
coverage which are well suited to you and your family’s needs. Not just for tax
deductions and exemption, buy a health insurance policy as it provides you the
ultimate financial protection in case of unexpected medical costs, which is
important as you get older and kind of face a higher risk of health issues.
Statistics
Related to Covid-19 Pandemic and its Effect on Health Insurance
The covid-19
pandemic has proved to be a gamechanger for the health insurance segment in
India. The more chances of hospitalization and exorbitant medical costs in
private hospitals have propelled Indians to take up health insurance coverage.
The global
health emergency has been a wake-up call for both general public and Indian
authorities to take health insurance coverage more seriously.
Let’s see
via various figures how Covid-19 pandemic affected the health insurance sector
of India.
Health
insurance premium collections saw a growth of 40% in 2020, due to huge rush by
public to cover themselves from Covid-19 pandemic.
During the
lockdown, the healthcare insurance increased by 34.2% in year-to-date in July
2022, compared to 9.9% growth in July 2021.
Health
insurance market in India was growing at a CAGR of 24% but rose about 34% in
the pandemic time period.
In the first
half of 2020-21, from April to September, health insurance became the most
appreciated segment amongst all the non-life insurers in terms of the premiums
collected during that period.
|
Non-Life
Insurance Segment |
Share of
total non-life premiums in half ended September, 2020 (%) |
Y-o-Y
growth in premiums (%) |
|
Health |
29.7 |
15.8 |
|
Motor |
29 |
-13.3 |
|
Crop |
19 |
-4.5 |
|
Fire |
11.9 |
33.5 |
|
Miscellaneous |
2.8 |
-7 |
|
Personal
Accident |
2.4 |
-7.6 |
|
Liability |
1.7 |
10 |
|
Marine |
1.7 |
-13.6 |
|
Engineering |
1.4 |
5.8 |
|
Aviation |
0.3 |
12.7 |
|
Source:
General Insurance Council |
||
Statistics
And Trends Related to Health Insurance and Digital Technology Usage
India boasts
a very mixed kind of healthcare and medical system, where both public and
private insurance players both co- exist. Private players have played a pivotal
role in bringing digital transformation in providing health insurance in India.
Now-a-days there are plenty of plans which cover a huge range of digital
benefits such as second opinion, e-consultation, telemedicine, wellness points,
online purchase of plans via website or mobile app, etc.
Let’s look
at the stats showcasing the industry’s adaptability in shaping the health
insurance landscape of India:
According to PWC’s Health Insurance Consumer Pulse Survey, digital
insurance is picking up very fast and has accounted for more than 20–30% of
growth in sales, whereas there has been a significant drop in the traditional
and offline channels.
PWC’s
surveys also indicate that the insured expect insurance providers and
intermediaries to provide easy and convenient digital means across every stage
of their journey.
As per the Mordor survey report, around 65% of Indian respondents are likely to use digital channels such as e-wallets, bank or insurance websites, and e-commerce platforms to purchase insurance.
Bottom Line
In the
coming years, we can surely imagine a much better picture of health insurance
penetration across India due to several reasons. The continuous rising medical
inflation and increasing cost of medical services will prompt Indians to buy
health insurance for themselves and their family or else it might strain all
their savings and will lead to a heavy medical debt.
Moreover,
with the advent of “Digital India” and the increased use of tabs and
smartphones, buying an insurance policy is just a click away. People are
gradually accepting the easy and convenient mode of buying insurance schemes
via online channels such as apps and websites instead of holding on to
traditional methods such as insurance agents.
With mounting out-of-pocket expenses, increased awareness, rising medical inflation, higher prevalence of lifestyle diseases and positive stance of government on healthcare sector, experts are confident that all these factors together will ensure “insurance for all” in India to turn into a reality.
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