The private health insurance industry has been growing at a growth rate of 37% since FY 2002 and currently stands at INR 5,125 crores (FY 2008). Several factors such as the changing socioeconomic and demographic environment of India, favorable regulatory environment as well as significant marketing push by insurance companies have driven the high growth rate of the industry.
There are several challenges that participants in the health insurance value chain face, which could hinder this growth. Foremost among these challenges are low awareness about health insurance, lack of standardization of healthcare providers and the lack of data that can empower informed decisions.
Similar to the key participants of the health insurance value chain, Indian consumers have their own challenges. To get a better understanding of these challenges, KPMG commissioned a consumer study across socio-economic classes A, B and C in metros, Tier I and Tier II cities. The report summarizes the key findings of the consumer study. It was found that while most customers agree with the concept and necessity of health insurance, they have limited understanding of the features of health insurance products and are skeptical about tedious claims processing procedures, limited options of hospitals/doctors and limited product offerings by insurance companies.
The report released at the Health Insurance Summit 2008, emphasizes that the “Pillars of Change” - increasing consumer awareness, standardization and accreditation of healthcare providers, enhancing healthcare infrastructure and building of a health insurance repository are critical to building a robust health insurance industry. However, these pillars need to be supported by the “Enablers for Growth” – Technology, innovation around products, pricing and channels – in order to propel the growth of the industry in the future. The report also talks about the key action steps that the various stakeholders need to take towards achieving this.