Ind-surance Industry is Bettering Healthcare

Consultancy firm Redseer's report forecasts that India's healthcare insurance market will reach a valuation of $222 billion by FY26, propelled by the expanding middle class and increasing digital adoption. The events in the industry corroborate these projections. Over the past few months, Banks in India have been aggressively partnering with Insurance companies. One can see that most of these partnerships are with life insurance companies. This includes AU Small Finance Bank and South Indian Bank’s partnership with Bajaj Allianz Life Insurance, Mumbai-based DCB Bank and Capital Small Finance Bank’s collaboration with Max Life Insurance, and state-owned UCO Bank’s partnership with Aditya Birla Health Insurance in March.

Nonetheless, the sector grapples with the challenge of escalating medical inflation, which has compelled numerous insurers to raise health insurance premiums this year, potentially impacting the market adoption rate. The Insurance Regulatory and Development Authority of India (IRDAI) targets ‘Insurance for All’ by 2047. The goal is to guarantee comprehensive insurance coverage for life, health, and property for all individuals while also providing enterprises with robust insurance support. Additionally, the aim is to enhance the global appeal of the insurance sector.

However, the GST on health insurance products is still 18 percent. Reducing this will help reduce the premium costs and make health insurance purchases more affor-dable for policy buyers. Additionally, increasing the limit to claim tax deductions under section 80D will further enhance health insurance affordability. This will also lead to more people opting for health insurance for their family and elderly parents. This yearly special issue sheds light on the insurance industry in India.