Bridging the Protection Gap: India's Pursuit of Universal Health Coverage

The health insurance sector in India stands at an inflection point. On one hand, it is the fastest-growing segment in the general insurance industry, with a growth rate exceeding 25% year-on-year. Aided by government schemes and awareness initiatives, more than 55 crore Indians now have access to health insurance policies.

However, on the other hand, the retail penetration remains around 3-4%, with only 5.3 crore individuals purchasing health insurance on their own.

A closer look at the data reveals that among the 55 crore population covered by health insurance, 90% are beneficiaries of government schemes or company-sponsored mediclaim policies. This leaves a substantial untapped population of 90 crore individuals in need of health insurance coverage.

Narrowing our focus, excluding those living below the poverty line (dependent on government sponsored schemes) and those not dependent on any insurance policies, there are approximately 40 crore Indians known as the "missing middle,” who are devoid of any form of financial safety net for health emergencies despite their ability to pay nominal premiums. This gap poses a critical challenge to India's journey toward achieving Universal Health Coverage (UHC). 

The Role of Health Insurance

Health insurance plays a pivotal role in averting financial crises resulting from health-related expenses.

So, what is the reason, behind this protection gap?

I believe, there are four fundamental reasons behind this: #awareness, #relevance, #affordability and #experience.

Over the next few days, I will delve into each of these aspects as we try to understand why a large section of the population is shying away from getting health insurance.

Stay tuned!

#HealthForAll #MissingMiddleCoverage #healthinsurance #insurancepenetration