“The standalone health insurance industry continues to show the fastest growth rate on account of constant innovation by the players, says RNCOS”
The health insurance industry in the country has evolved significantly in past decade with the application of digitalization and the emergence of Internet of things (IoT). The embracing of technology has brought in revolutionary changes in the industry as industry players are now assigning chat bots to better manage the operations. Health insurance is the fastest growing sector with the CAGR of around 17% during the period 2011-12 to 2015-16 as per RNCOS analysis.
Highlighting the potential of this industry, Shushmul Maheshwari, CEO – RNCOS said, “Leveraging digital distributional channels is likely to enhance the customer experience and propel the growth of insurance sector in India. With rising medical cost, health insurance has become a necessity of the era than a business proposition”.
According to RNCOS, the health insurance industry is dominated by public sector general insurers. However, standalone sector general insurers have continued to gain the market share while the private sector general insurers have continued to witness dip in the industry since 2012-13.
The Indian government is undertaking various initiatives for the development of insurance sector in the country. For instance, the government has liberalized the foreign direct investment rules for the insurance sector by allowing overseas companies to own up to 49% of domestic insurers with the mandatory approval of the Foreign Investment Promotion Board (FIPB). Furthermore service tax on single premium annuity policies has been reduced from 3.5% to 1.4% of the premium paid in certain cases.
However, the affordability of health insurance premium, inadequate healthcare infrastructure and lack of awareness are the challenges pertaining in the Indian health insurance industry. The inability to understand the basic concept is a major roadblock in way of growth towards insurance industry. Although the awareness level has grown over the decade but the momentum to popularize the health industry remains slow.
With more than a decade of experience in insurance industry, RNCOS can act as a potential growth partner in all your business endeavors, be it product launching, geographic expansion, sales improvement, distributor/retailer tie-ups etc. We help make your business flourish by studying the market dynamics, collating with you business and devising the right strategies.
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