Health Insurance-It’s Potential and Distribution Avenues in India

Abstract

India has one of the highest per capita private healthcare expenditures in the world. Private out-of-pocket expenditures are the primary source of healthcare financing in India. The Indian health insurance industry has emerged as a fresh and profitable development opportunity for both established firms and new entrants. It is one of the country's fastest-growing and second-largest non-life insurance categories. Although the Indian health insurance industry has grown rapidly in recent years, it remains mostly untapped due to a variety of flaws that must be addressed. Furthermore, several private general insurance firms have entered the health insurance market, and the first business devoted solely to health insurance was established in 2006. (Chennai-based Star Health and Allied Insurance Co.) Despite growth in insurance volume, the diversity of health insurance policies has not increased sufficiently. Most packages only cover a portion of the expense of uncommon incidents (hospitalizations & inpatient surgery, with an upper limit). Aside from protecting health insurance consumers and beneficiaries, regulations can be effective instruments for promoting access to healthcare, controlling health coverage costsfor healthcare providers, and improving healthcare quality.