Speaking at the “Conference on Health Insurance 2042- Let us Plan for Ambitious Target for 2042″, organised by the PHD Chamber of Commerce and Industry (PHDCCI), Jaswal stated that distribution and affordability are two keywords to get a large number of people insured.
She elaborated that it is impossible to reach out to them in smaller numbers, hence a concept of the group should be brought in. “It can be professional affinity, local affinity, staff affinity, etc. We should insure them in large numbers, not small,” she said.
Stating that the health insurance sector has undergone a lot of change in the last two years of the pandemic with people realising its importance, Pradeep Multani, President, PHDCCI explained that the Ayushman Bharat Scheme has managed to cover the bottom 50 per cent of the population and almost 20 per cent of the population is covered through various other voluntary schemes. The remaining 30 per cent or the missing middle is what the government must look at now.
According to Multani, the health insurance sector in India is expected to grow at a rate of 10.1 per cent in the years between 2021 and 2027. He explained that there is a need to develop customised products as one product may not be suitable to take care of the needs of all the people concerned.
Dr. Harsh Mahajan, Chair, Hospital & Diagnostics Committee, PHDCCI and Founder & Chief Radiologist, Mahajan Imaging, explained that the hospital sector accounts for 80 percent of the total healthcare segment in the country. He stated that the hospital industry in India would touch $132 billion by 2023 from $62 billion in the year 2017 growing at a CAGR of nearly 16-17 percent.
He informed that the digital healthcare market valued at $116 billion in the year 2018 is expected to touch $485 billion by the year 2024, a growth of 3.5 times. Dr Mahajan explained that the spurt in growth is primarily due to the pandemic which accelerated the diagnostics sector to growth at a rate of 20.5 percent. It is valued at $32 billion now from just $5billion in the year 2012.
Stressing how important it is for the insurance provider to adopt the change, Dr Sameer Gupta, Co-Chair, Hospital & Diagnostics Committee, PHDCCI, said, “Lots of primary healthcare services are going to be virtual down line as COVID has accelerated this even faster. It is very important for the insurance provider to understand and adapt to the change i.e. virtual health services.”
Informing that from Rs 690 crore in the year 2001, the insurance sector has grown to Rs 73,300 crores in the year 2022 crore, a growth of around 106 times, S K Sethi, Co-Chair, Banking, Financial Services and Insurance (BFSI) Committee, PHDCCI & Founder & CEO, Insurance Foundation of India, stated that blockchain technology would help in eliminating the frauds taking place in insurance sectors to a great extent.
Highlighting on the need of controlling the cost of treatment, Bhaskar Nerurkar, Head, Health Insurance, Bajaj Allianz General Insurance- Wellness, said, “The cost of treatment across tiers keeps changing, even in the same hospital with the same equipment and doctor the cost changes. For example, the cost of eye cataract surgery in the general ward cost Rs 45,000 whereas it cost Rs 1.75 lakhs in the prince suit. So the line between the treatments is blurring. There has to be some regulation at the hospital too for cost reduction.”
The event also saw the releasing of the knowledge paper on Health Insurance 2042.