Indian Health Insurance Check - Higher Claims Drive A Rise In Pricing Across Product Categories: Motilal Oswal
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Motilal Oswal Report
Demand for health insurance remained strong in FY22, with an overall growth of 25%. This was on top of a strong base in FY21, where the growth in premium stood at 13%.
Retail health premiums grew by 16.5%/29% in FY22/FY21 and now constitute 45% of the overall health business. Group health premium during the same period grew by 31% and 8% respectively.
The impact of the second and third Covid-19 waves led to a significant jump in claim ratios in FY22. Also, the severity of non-Covid claims has been higher in FY22.
Public sector undertaking insurers have been the worst hit, followed by private multi-line and standalone health insurers.
Covid-related claims accounted for 6% of the total number of health claims paid out in FY21. It is expected to constitute 11-12% of the total number of health claims paid out in FY22 (as per ICRA).
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