only 2 health insurance co's start working in India in 2 and a half year

India is a large country .IRDA has special rules for setting up of health insurance co's by putting in equity of Rs. 25 crores vs Rs. 100 crores required for setting up of a normal non life insurance co.

In 2 and a half years time only 2 health insurance co's started working in India.

What can be the reasons?

1 Shortage of funds -No.I do not believe .In our country even movies are being produced with investment of more than Rs. 25 crores
2 Unattractive as a business-With population of 110 crores,every business is boomimg,GDP growth @ 9.3% (I do not believe this)
3.Rs.25 crores is too small asum for setting up an all India co and high real estate cost is affecting .Yes this is the possible reason.

Let us think on the following lines;
Instead of India as the territory why not consider state as the territory and IRDA considers issuing of licence to a co ,which will operate only in 1 state.
Lower equity of Rs. 10 crores will do.
easy to start the co as it has to open offices only in 1 state
better control on costs and lower cost of selling
Many of our banks in private sector stated at district level and then grew at the state level and are operating not only in India but even in foreign.level

Comments are invited