Health Insurance in India – Opportunities and Challenges

Abstract: – Health insurance is the emerging service sector in India. India is a growing economy, people in urban and rural areas are now days more educated, health conscious, rise in their living standard and need of quality healthcare leads to need of health Insurance. Health insurance in India are provided by government sector as well as private sector players. After deregulation many private sector Insurance companies entered in the insurance market and offer a wide range of innovative products to the consumers. Liberalization also opened the doors for foreign player to enter in health insurance sector. As a result the scope of Health insurance sector is getting wider. Government of India is also focusing on the improvement of health care and health insurance services .Recent government envisioned health insurance for each citizen. It has planned to cover the medical treatments of the entire population like free drugs, insurance for serious ailments under Universal Health Insurance called National Health Assurance Mission. Growing middle class, educated youth, awareness of need for protection against lifestyle disease, tax benefits are the factors which are giving growth opportunities to health insurance sector to become fastest growing non-life insurance segment. These opportunities are facilitating market players to expand their business and competitiveness in the market. Companies are becoming more customer centric, drive down cost, using new technology etc which are helping them to grow. But there are some structural problems faced by the companies like high claim ratios, less understanding of product, changing need of customers etc. which emphasize companies to innovate products on all fronts. This paper is an attempt to study the present health Insurance scenario, opportunities and challenges of Health Insurance Companies in India

Keywords: Health insurance, major players of health insurance in India, opportunities in health insurance, structural problems.

INTRODUCTION

It is health that is real wealth and not pieces of gold and silver”—-Mahatma Gandhi According to the statement if you don‟t have health, you don‟t have anything .Significant changes in lifestyle now in modern days are giving risk to occurrence of the life style diseases. Side by side more educated population these days is getting health conscious. For better health management with regular checkups, yoga, gym and preventive health care, people are bending towards Insurance needs. Health Insurance is the best solution for health care need .Health insurance is insurance against loss through illness or injury of the insured; especially: Insurance providing compensation for medical expenses and often income for disability (Merriam-webster).
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