Retail health segment drives surge in health insurance premiums, shows data

The non-life insurance industry has seen a significant contraction in premium growth after the country went into a lockdown to stem the spread of the Covid-19 pandemic in March. But there is a silver lining.

The pandemic increased awareness about health insurance, leading to a surge in demand for such products. Data compiled by general insurance council shows the health segment has grown 16 per cent in the first half of FY21 (H1FY21), with the retail health growing more than 34 per cent and group health growing almost 6 per cent, while the non-life insurance industry grew 1 per cent.

In the health segment, retail health has been the growth driver. While general insurers have managed to report 11 per cent growth in their health segment, with almost 22 per cent growth in retail portfolio, it is the standalone health insurers that have benefitted from the increased awareness for health insurance to post a 31 per cent growth in health segment with 48 per cent growth in retail health.

Group health has also done well with general insurers posting a 17 per cent growth in H1FY21 and standalone health insurers reporting a 7 per cent growth.

Government health schemes have reported contraction and so has the overseas medical insurance segment.