MUMBAI: Standalone medical insurance corporations have grown greater than twice as a lot because the normal insurance coverage trade in FY24, in response to the Basic Insurance coverage Council.
The overall insurance coverage trade reported an annual premium of practically Rs 2.9 lakh crore for FY24 – a few 13% improve from the Rs 2.6 lakh crore reported in FY23. Alternatively, the 5 standalone medical insurance corporations reported a 26.2% improve in whole premium throughout the identical interval from Rs 26,243 crore to Rs 33,115 crore.These figures are based mostly on early knowledge launched by the council.

The expansion of the 5 standalone medical insurance corporations (SAHI) might be attributed to a rise in total ticket sizes, with all SAHI corporations launching high-value insurance policies that run into crores of rupees. There has additionally been a revision in premium charges to maintain up with medical inflation and the widening of the scope of canopy, insurers mentioned.
In line with an evaluation of Irdai’s annual report for FY23 by Emkay Finance, retail medical insurance premiums clocked a CAGR of 20% over FY12-19, whereas the variety of folks lined recorded a CAGR of 11%. Between FY19-23, nonetheless, the premiums’ CAGR was 19% – largely led by value hikes and sum assured will increase – and the variety of folks lined grew solely 5.9%.
For the 11 months ended Feb 2024, the overall medical insurance premium was Rs 98,716 crore, up 20% from Rs 81,997 crore final 12 months. This determine contains well being premium from normal insurers and SAHI corporations. The share of medical insurance for this era stands at 37.5%, up from 35.2% final 12 months.
The expansion in medical insurance has drawn new gamers, with Star Well being founder V Jagannathan’s Galaxy Well being and Surgeon Devi Shetty’s Narayana Healthcare getting licences.
Whereas different normal insurance coverage corporations are additionally seeing a rise in medical insurance premium, their efficiency is dragged down by slower progress in different segments like motor, officers mentioned. The trade is but to launch segmented knowledge for the total 12 months. The non-life trade this 12 months has been dragged down by slower progress amongst specialised insurance coverage corporations – Agriculture Insurance coverage Firm and ECGC. Agriculture insurance coverage noticed its premium drop 32% to Rs 9,919 crore from Rs 14,619 crore final 12 months.
Non-public insurance coverage corporations recorded a wholesome 14% progress in premium at practically Rs 2.5 lakh crore in comparison with a little bit over Rs 2.1 lakh crore final 12 months. Among the many public sector insurance coverage corporations, Oriental Insurance coverage reported the very best progress at 17%, whereas Nationwide Insurance coverage grew by lower than 1%. Non-public insurance coverage and SAHI corporations elevated their market share by one proportion level.

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