Health insurance grows 42% in H1

Aided by government health schemes and correction in rates, insurance for health and personal accidents recorded highest growth in the non-life insurance segment during the first half of the financial year.

According to the data released by the Insurance Regulatory and Development Authority, the health segment grew 42 per cent followed by personal accident that grew 25 per cent. State-sponsored schemes like the Rashtriya Swasthya Bima Yojana (RSBY) forms a large part of the health insurance segment. “These schemes are contributing to the growth of health insurance,” said S L Mohan, secretary, General Insurance Council. The health insurance space is buzzing with activities, with the government launching various schemes. The government has launched RSBY for people below the poverty line, while implementing other plans like the Employee State Insurance Scheme and Balika Samriddhi Yojana.

Two standalone health insurance companies – Max Bupa and Religare –started operation in the current financial year. Old players like ICICI Lombard are also betting on health in a big way. “Both retail and group health insurance are growing. Group has turned profitable now, as there is a correction in price. Awareness about insuring health and medical costs has also gone up,” said Tata AIG General Insurance MD and CEO Gaurav Garg.

Insurance companies collected Rs 4,898 crore from health in the first six months. Motor, along with motor-own damage and third-party, constituted for most of the pie (around Rs 15,000 crore collectively).

“Growth in the motor insurance will depend on sales and manufacturing,” added Mohan. Fire, which was the highest-growing segment for non-life insurance companies, witnessed 19 per cent growth in the first half, while liability insurance grew 16 per cent.

Marine hull and engineering saw a single digit growth, while aviation grew over 11 per cent. Premium rates on aviation have hardened almost 10-15 per cent since January. During the period, the non-life insurance sector grew 23 per cent to Rs 20,679 crore compared to the year-ago period. The industry experts expect the growth to be close to 20 per cent in the current financial year.