Indian Economy News

India’s health insurance sector records strong growth, premiums exceed US$ 12.98 billion in FY 2024–25

The Indian health insurance industry has registered strong growth. In fact, the industry has been able to achieve a growth rate of over 9%, with total premiums exceeding Rs. 1.2 lakh crore (US$ 12.98 billion) in FY 2024–25. This growth is driven by increasing awareness about health cover, access to healthcare finance, and a growing need for financial protection against healthcare expenses. Moreover, growth is also supported by structural changes in healthcare spending. In this context, regulatory interventions by the Insurance Regulatory and Development Authority of India have been crucial in creating a robust ecosystem in this industry through various structural reforms.

To improve the policyholder experience and enable faster access to healthcare services, IRDAI has put in place strict timelines for cashless settlement of claims. Approvals for pre-authorization have been made mandatory within one hour, and final authorization within three hours. This is expected to enhance service efficiency and reduce processing time. In terms of claims settlement performance, the sector has shown improvement in the claims paid ratio, which has increased to 87.50% in FY 2024-25. Additionally, out of the over 1.37 lakh grievances, almost 93% have been settled in the same financial year. This reflects the improved grievance handling in the sector. The overall growth in the sector has been driven by factors such as the increasing age of policyholders, higher levels of coverage, and improved product features.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.