Status of Health Insurance Sector in India

The insurance sector in India has evolved to a greater degree over the last couple of decades. There are new trends driving the demand for life insurance with customer aspirations and expectations being raised. While regulatory reforms and advances in technology have profoundly influenced the growth and development of the sector, there is still immense potential as the economy continues on its growth trajectory. The insurance sector has played a key role in the financial inclusion drive through its products. Since the structure of the economy is undergoing change, the insurers also need to respond to these challenges in a positive manner. The insurance sector will have to be at the forefront for providing sustainable security products to address various risks that affect the people and also play an active role by undertaking activities that promote the penetration and density of insurance. Health care has always been a problem area for India, a nation with a large population and larger percentage of this population living in urban slums, rural areas and also below the poverty line. Health care has become one of the India‟s largest sectors - both in terms of revenue and employment. It comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, health insurance and medical equipment. The Indian healthcare sector is growing at a brisk pace due to its strengthening coverage, services and increasing expenditure by public as well as private players. Health insurance is now emerging as a tool to manage financial needs of people to seek health services. Today, various health insurance schemes are available in the market and providing benefits from an individual to an entire family. Present paper tries to present the health insurance scenario in India and suggest some initiatives to increase health insurance penetration.