Health Insurance Premium collection is touching Rs. 129863 crores in 2024-2025

Few years back (2007-2011) we were very enthusiastic about the growth of Health Insurance portfolio. This was especially true during 2007-08, when this portfolio grew by 59.20%. Let us look at the growth figures in the recent year.

We have drawn graph showing the % growth YOY and, it shows that yearly growth figure in % terms is stagnating for last 4 years around 22%. Even at 20.60% for the current year (31 March 2025) we foresee this figure in money terms and will touch Rs 129863 Crores.

Graph Showing % Growth Year Over Year

Graph Showing Growth in Premium

Premium increase by insurers, increase in healthcare costs, stock market meltdown (February 2025) is guiding us towards customer resistance and experts have started talking about fall in percentage (%) growth of health insurance premium.

Let us try to make projections for next 6 years.

We have done this with growth rate of 12%, 20%, 30% & 60%.

Growth Chart if Premium Increases at Varying Rates

The survey of Research & Analysis Wing of Insurance Foundation of India revealed that top most wish of every individual is that- “He should have good health”. No one wishes to have materialistic prosperity of the world with ill health. This wish will support the growth of health insurance industry in the years to come.

If someone asks me- What should be the growth in health insurance premium with which I will be happy? - I will say it should not be 30 % gross but it should be 30 % net (as we have to discount for inflation of 7 % per annum in normal costs and 20 % per annum in health care costs). Let us not be satisfied with meager growth of 12 % or 20 % let us aim for growth of 30 %.

It means we should have growth of 30% year over year and then the figure will touch Rs. 519755 crores by 2029-30. Let us be clear that Health Insurance portfolio of Indian Non-Life Insurance will be No. 1 portfolio for years to come.

Best policy of today may not remain the best policy after few years

Best policy of today may not remain the best policy after few years

Large number of clients contacts us to know which the best policy is so that they can buy the same. Everyone’s wish is to buy the best. One of the main parameter on which decision is taken is lowest price as on today. Our suggestion is that take broader view of the whole scenario because what is lowest today may not remain lowest after few years. Is it not affect that last year Reliance was having very low premium rates and during April 2010 they suddenly increased the rates by as high as 231%. They are now one of the highest priced one and are 10th position in a list of II. You do not change insurance company frequently therefore let us see some rates as an example,

Premium for family floater policy
(Age of head of the family 35yrs/ 45yrs- 2 Adults+ 2 Children)

Only premium can not be the basis as there are many parameters like issue of policy & ID Cards ,claims settlement, brand goodwill .

Apollo Munich & Max Bupa are 2 companies who do not put a limit on room rent @ 1% of sum assured.
In comparison of Iffco-Tokio vs Apollo Munich you save Rs. 3335 by not taking Apollo Munich as a today. Assuming a claim is lodged and hospitalization is needed for 6 days where room rent is Rs. 7000 per day. You will notice that hospital will charge Rs. 42000. Apollo Munich will pay Rs.42000 where else Iffco-Tokio will pay Rs. 3000x6=Rs.18000. You will have to pay out of your pocket Rs.24000.

At the same time you will notice Apollo Munich which is No. 7 for age 35 yrs becomes No.10. When the head of the family becomes 45 yrs, which means as age will go up Apollo Munich will increase the premium rates at a faster rate.