Non-life insurers have seen a 14.5 per cent increase in premium collection in the health segment between April and October this year, reflecting the need for health insurance in the country grappling with a surge in Covid-19 cases.
The health segment has seen premium collection of Rs 32,879.39 crore compared to Rs 28,704 crore in the corresponding period last financial year. The growth is led by the retail segment which has seen an almost 34 per cent rise in the reporting period, while group health reported an increase of 12.21 per cent.
On the other hand, premium collection for government health schemes has contracted 26 per cent. Standalone health insurers have been the greatest beneficiaries of this surge in demand for health insurance products, witnessing an almost 48 per cent growth in premiums collected in their retail health portfolio, while general insurers have seen a 21 per cent growth in the same period.
Experts, however, are of the view this level of growth is not sustainable in the long run, but the awareness created around health products would help insurers going forward.