Marriage, stable income and more women in the family can result in 10% of India’s population buying health insurance products against the current 2%, according to a recent survey.
Health insurance in 2015 will be the highest in the states of Delhi in the north, Maharashtra and Gujarat in the west, West Bengal in the east, and Andhra Pradesh and Tamil Nadu in the south due to higher awareness, the survey by economic consulting firm Nathan India, a subsidiary of a US-based Nathan Associates Inc and iTrust Financial Advisors Pvt Ltd, a financial service provider, revealed.
The “most likely to buy” are individuals who are married, have a graduate degree, and are salaried, while the “less likely to buy” are unmarried and do not have a graduate degree, regular income, or knowledge of health insurance. the report said.
By 2015, the “most likely” segment will increase from the current 1% to 2% of the population and the less likely will decrease from 37% to 22% of the population, creating “huge untapped potential for the health insurance industry.”
The health insurance market in India is expected to grow five times so as to cover 10% of the population by 2015, the report said. The study revealed the industry would grow from $1.6 billion in 2010 to $7.6 billion in 2015.
Globally health insurance has become a key for consumers as even the most developed economies are finding it tough to meet the burgeoning spends on health.
“In India the situation is compounded by the fact that government spends less than 2% of the GDP on health — ranking amongst the lowest five globally and consequent private institutions and individuals are compelled to fund three fourth of the total expenditure on health in the country,” the report said.