Health Insurance Market Share In India By State [2023]

Although health insurance in India is still in an embryonic state, the health insurance market is one of the fastest-growing industries, growing at a steady and robust pace. There is a large potential for health insurance market share to expand in India, and reach a larger population, with huge opportunities for the marketing and distribution of health insurance products.

India's private health insurance sector is booming, with more and more private health insurers entering the market to provide quality healthcare to a greater segment of the population with customized healthcare coverage. However, since the distribution of health insurance market share in India is not evenly spread, it is important to know the health insurance market share by state.

Although all Indians have an access to free healthcare in the public sector, due to the quality and sophistication of treatment, Indians are increasingly selecting private hospitals over public hospitals.

This is a big motivator for private insurers to enter the market and provide more comprehensive health insurance.

What is comprehensive health insurance? Find out here!

The Covid-19 pandemic has made everyone aware of life's uncertainties and unpredictability, and their lack of preparations in the event of a medical emergency.

Consequently, in India, the health insurance business has changed dramatically over the previous two years. Customers' perceptions and their need for health insurance have both changed significantly.

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What Does The Future Hold For Health Insurance In India?

In today's environment, the way the insurance industry is underwritten is rapidly changing.

Because the health insurance category is now receiving consumer attention, the growth engine/trajectory of this industry will continue. With a major shift in consumer perception of the industry, the focus has gradually shifted, too.

The rising expense of hospitalization is the underlying cause of this shift, which has made consumers realize the long-term importance of purchasing health insurance. The premiums were written are far lesser than the amount individuals would have had to cough up during emergencies.

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Consumers have also discovered that purchasing a comprehensive plan is the better option because it provides a more holistic approach to healthcare by providing coverage for diseases, pre-existing conditions, and even future lifestyle conditions.

There is an increasing possibility for the industry to develop new and creative product offerings that satisfy unmet client needs.

A significant portion of the consumer base still lacks specialized or customized health insurance. Clearly, there is now a large gap in the market, where the insurance penetration is not yet optimum, that has to be filled with unique and customized items.

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Many customers are now seeing health insurance as a necessary investment that provides them and their loved ones with all-inclusive health coverage.

We are living in a period when the number of health hazards and risks is steadily increasing. A major health emergency can burn a huge hole in a person's wallet and, in most cases, exceed their savings. Certain procedures can make people go bankrupt in a matter of a few days or weeks.  

The significance of health insurance has thus become unavoidable in such situations.

Read more on why comprehensive health Insurance is important for you, here.

Health Insurance Market Share In India By State

The distribution of health insurance, or its market shares, is not evenly spread among the various states of the country. According to reports from 2019-20, fewer than 40 percent of families in 11 Indian states are covered by health insurance products.

Maharashtra has the highest share of insurers' premiums across India at 29 percent. Tamil Nadu followed at eleven percent, while the rest of India contributed 36 percent of the premiums.

Hunting for health insurance statistics by the state? Check them out here.

Which Of The Health Insurers Has The Highest Market Share?

According to the gross premium collection in Fiscal Year 2021, the top three Indian health insurance companies are New India Assurance, Star Health, and United India Insurance.

New India Assurance has an 18 percent market share, while Star Health and United India each have 16 percent and 11 percent. National Insurance and Oriental Insurance are in fourth and fifth place, respectively, with 10 percent and percent of the total health insurance premium held.

Of all the standalone health insurance companies, the only one in the list of top five is Star Health Insurance. Standalone health insurers are different from general insurance companies, in that they only provide health, travel, and accident cover.

According to surveys, Star Health is one of the leading health insurance companies with the largest market share in the retail health insurance industry.

Star Health received 31 percent of the overall gross premium collection, while HDFC Ergo General came in a distant second with 10 percent.

The following table elaborates on the Health insurance companies in India's market share.

Here's the list of the most highly rated top 5 best group medical insurance brokers in India.

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Guide: Check out this informative guide to explore the latest trends in giving your employees the benefits they deserve.

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