Industry Brief
Introduction
The Indian Insurance industry is made up of 571insurance1companies,among which124
companiesdeal in1life1insurance1business and133 in non1life-insurance. Among1lifeinsurance
companies, Life0Insurance Corporation*(LIC) stands as the onlyPSU. In the non0life-insurance
companies, 6 PSUsare present and a single national player, General*Insurance*Corporation*of
India*(GIC). Additionalplayers are 3rd party administrators, surveyors, brokers providing health
insurance services, agents (individual and corporate).
Growth Rate
Because of government's effortto insure general public,insurance penetration has been
pushed in our country. The gross premiums in the country scaled up to(US$ 94.48 billion) Rs
5.53 trillion in Financial Year 18, with (US$ 71.1 billion) Rs*4.58*trillion*from*life
insurers&(US$ 23.38 billion)*Rs 1.51*trillion from*non*lifeinsurers. Net premiums as percent
of GDP*reached*3.69 %*in*2017 compared to 2.71%*in*2001.
DuringFY19 (October 2018),new life-insurance business premiumjumped up to 3.66 percent yoy
to (US$ 15.46 billion) Rs 1.09 trillion.In the same period, premiums of non1life insurers reached
(US$ 13.71 billion) Rs 962.05 billion, showing a yoy growing rate of 12.40 %.
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Latest Developments
Below are a few of the latest trends in the Indian insurance market.
Government Interventions
Below are a few of the steps by the government of India to amp up IndianInsurance sector:
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Future Aspects
Future seems bright for life*insurance industry.*With a few*changes*in*the*regulatory
framework*which*will*change*the*fashion in which industry1conducts its business.
The insurance*industry*is*expected*to be US$*280*billion*by*financial
year*2020.The*Life*insurance sector is*expected*grow*by*12-15 percent annually*for*the
upcoming3-5*years.
Demographic1factors such as increasing middle-class, increasing population&*increasing
awareness about protection along with retirement-planning is supporting the
growth*of*the*Indian*life*insurance industry.
Exchange Rate Usedin above data is INR 1 = US$ 0.0159 (March 31, 2019)
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Competitors
Thiswas the1st in the list of standalone health-insurance players in the country and has sculpted
a niche in health insurance. The company has an enormous network of 7000+ hospitals in India.
It also boasts of an in-house claim1settlement team and has a 90% rate of cashless health
insurance claims.
It is the leading insurance company and has a variety of health insurance services. Max India Ltd
and Bupa Finance PLC have a joint participation in it. This company has piled upimmense
knowledge in field of insurance industry. The company offers exclusive benefits in mediclaim
policy like coverage of room-rent devoid ofany sublimits along with life-long renewal option.
Thiswas formed after the merger ofMunich Health and Apollo Hospitals Group and is one of the
best health insurancesas it offers health policies with comprehensive coverage. It has a wide
range of offerings for customersof all income groups.The company has a record settlement
time of 15 days for 95% of claims on health insurance plans.
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This is a joint participation between TTK group and Cigna. It was set up in 2014 and immediately
became one of the best health-insurance players in our country.It has a collection of a mix of
products for the individual and its family. It provides medical expenses coverage of 90 days
after hospitalization and60 days before.
This is a distinguished name in the health-insurance market in India. It provides coverage of
cost in any medical treatment. Itprovides a range of network hospitals andprovides cashless
treatment benefits in about 3200 hospitals throughoutthe country. Moreover, ittakes only
about 14 days to approve reimbursement claims.
Company Description
Religare was founded in 1982 as Religare Securities Ltd (RSL), a stock-brokerage firm called.
Religare1Finvest,*a*group*company*was instituted in 2001. It was a*private
NBFC.(RHIC)Religare*Health*Insurance*Company*Limited was initiated in*2012 after*tie up
ofUnion Bank and Corporation Bank of India with Religare Health-Insurance. Today, Religare
Enterprises Limited (REL) is present across three verticals as an enlarged financial group.
Religare serves a diverse segment of market from affluent to mass retail. They serve over 1.1
million clients of about 1200+ locations, having subsidiaries in around 400 cities. Religare
Health*Insurance*is*one*of*the best andthe fastest*growing standalone Health
Insurance*companies*in*India. It caters to both institutions and individuals.The business
structure of Religare is as shown below:
Below are the health insurance plans offered by Religare.
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Reference:
https://www.gibl.in/blog/health-insurance/top-10-health-insurance-companies-in-2019
https://www.ibef.org/download/Insurance-September-2019.pdf
https://www.religarehealthinsurance.com/
https://www.religare.com/index.aspx
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TIER-WISE DISTRIBUTION OF OFFICES OF STANDALONE HEALTH INSURERS
st
(as on 31 March 2018)
Insurer Tier-wiseClassification Geo-Classification
Tier 1 Tier 2 Tier 3 Tier 4 Tier 5 Tier 6 Total Metro Urban Semi Rural Total
Urban
Aditya Birla 60 0 0 0 0 0 60 54 6 0 0 60
Apollo Munich 155 2 1 0 0 0 158 101 54 3 0 158
Cigna TTK 19 0 0 0 0 0 19 17 2 0 0 19
Max Bupa 30 0 0 0 0 0 30 30 0 0 0 30
Religare 73 1 0 0 0 0 74 52 21 1 0 74
Star Health 357 28 45 4 0 0 434 153 204 77 0 434
SAHITotal 694 31 46 4 0 0 775 407 287 81 0 775
Tier -1 Population - 1,00,000 &Above. Metro - 10,00,000 and above
Tier -2 Population - 50,000 to 99,999 Urban – 1,00,000-9,99,999
Tier -3 Population - 20,000 to 49,999 Semi Urban -10,000-99,999
Tier -4 Population - 10,000 to 19,999 Rural – Population upto 9999
COMPLIANCE OFSTAND-ALONE HEALTH INSURERS WITH RESPECT TO
RURAL SECTOR OBLIGATIONS 2017-18
Insurer Age of the Target Gross Amount of Achievement
Insurer(As at the (as a percent premium premium (percent)
end of gross for the procured in
Of F.Y.2017-18) premium F.Y.(In`lak theRuralsector
written) h) (In`lakh)
Aditya Birla 1 1 24317 351 1.44
Apollo Munich Health 10 3.50 171751 7380 4.30
Cigna TTK 4 2.50 34640 5814 16.78
Max Bupa 8 3.00 75447 3963 5.25
Religare 6 2.50 109161 9913 9.10
Star Health 12 3.50 416111 57471 13.81
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COMPLIANCE OF STAND ALONE HEALTH INSURERS WITH RESPECT TO
SOCIAL SECTOR OBLIGATIONS 2017-18
Sl. Insurer Age of the Insurer Target Total business Number of Achieved
No. (as at the end of (as a percent Procured in the Lives covered (percent)
F.Y.2017-18) Of lives preceding Under social
covered) Financial year sector
(lives in lakh) (In lakh)
1 Aditya Birla 1 0.50 2 0.59 28.58
2 Apollo Munich 10 5 42 2.50 6.00
3 Cigna TTK 4 1.50 4 0.11 2.68
4 Max Bupa 8 4.00 24 0.98 4.07
5 Religare Health 6 3.00 20 5 25.80
6 Star Health 12 5 92 14 15.78
GROSS DIRECT PREMIUM INCOME IN INDIA: GENERAL AND HEALTH INSURERS INSURER-WISE
Standalone Health Insurers (Rs. In Crores)
INSURER TOTAL PREMIUM MARKERT SHARE
2016-17 2017-18 2016-17 2017-2018
Aditya Birla 54.04 243.17 0.04% 0.16%
Apollo Munich 1301.93 1717.51 1.02% 1.14%
Cigna TTK 221.8 346.40 0.17% 0.23%
Max Bupa 593.93 754.47 0.46% 0.50%
Religare Health 726.07 1091.61 0.57% 0.72%
Star Health 2960.05 4161.11 2.31% 2.76%
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