Foreign players
The opening up of the insurance sector to private players is expected to give a shot in the arm of the healthcare industry. Currently, in India only 2 million people (0.2 % of total population of 1 billion), are covered under health insurance. Competition not only improves quality of service but also makes health insurance affordable for the larger population of India.
Health insurance experienced a robust growth rate of nearly 44 per cent during 2006-07. The private health insurance companies have been steadily increasing its share over time accounting for 38 per cent of total health insurance by end-March 2007 (as against 24 per cent by end-March 2006).
McKinsey-CII estimates the number of potential insurable lives at 315 million. Swiss Re estimates a potential of US$ 7,700 million in health insurance premium by 2015.
Apollo Hospital is setting up a standalone health insurance company in association with DKV, a leading European (Germany-based) health insurer.
US-based Aetna and Cigna Healthcare and UK-based Bupa Healthcare are looking to enter the market.
With less than 10 per cent of the population having some sort of health insurance, the potential market for health insurance in India is huge.
