The Expansion of Health Insurance Industry in India: Growth, Jobs, and Future Prospects
India's health insurance industry has shown robust growth, despite facing a temporary setback during the 2019-20 CORONA period. As the economy indicates a gradual recovery, the industry is poised for continued expansion. This article delves into the current state, expected growth, job creation, and future prospects of the health insurance sector in India.
Current State and Growth
According to recent data, India's health insurance industry saw a 13% year-over-year (y-o-y) growth in gross direct premium income, reaching Rs 51,600 crore or approximately US $6.8 billion at the end of the fiscal year 2019-2020. This growth can be attributed to several factors, including increased consumer awareness, the thriving adoption of electronic media and digital platforms, and the emergence of new insurance models.
Furthermore, the industry's growth is expected to continue, with forecasts suggesting that it will touch at least USD15 billion within the next five years. This growth is driven by growing public and private sector participation, regulatory support, and the increasing reliance on digital health insurance solutions.
Job Creation and Health Sector Impact
The expansion of the health insurance industry is not only boosting the nation's economy but also creating significant employment opportunities. According to projections, the industry is expected to generate around 25-30 million jobs in India by 2030. The creation of jobs is particularly notable due to the implementation of initiatives like Ayushman Bharat, the National Health Protection Scheme. As of June 12, 2019, the scheme had reached 168,418 sub-centres and 33,476 primary health centres (PHCs).
Hospital Industry Growth and Private Sector Role
The hospital industry in India is also experiencing substantial growth. In fiscal year 2017, the hospital industry was valued at Rs 4 lakh crore or approximately US $61.79 billion. Projected growth indicates that this value will reach Rs 86,000 crore or about US $132.84 billion by 2022. The private sector has played a pivotal role in this growth, contributing to almost 74% of the country's total healthcare expenditure. This resilience and growth are a testament to the emerging vibrancy of the private healthcare sector in India, which has earned both national and international acclaim.
It is also important to note the continued support from the government. The approval of the continuation of the National Health Mission under the Union Budget 2019-2020, with a budget of Rs 31,745 crore or approximately US $4.40 billion, further reinforces the commitment to the health sector. This investment is crucial in furthering the expansion and development of the health insurance industry, ensuring that both public and private stakeholders are aligned in their efforts to improve healthcare infrastructure and services.
Conclusion
The health insurance industry in India is witnessing an unprecedented transformation, driven by technological advancements, government initiatives, and market demand. With the potential to generate millions of jobs and contribute significantly to the economy, there is a vast opportunity for continued growth and development. As the sector evolves, it is essential to maintain a focus on enhancing accessibility, affordability, and quality of healthcare, ensuring that the benefits of this growth are accessible to all.