Fall in premium not the only growth pill for health insurers

Industry still grapples with issues such as high medical inflation and inadequate coverage

- Anshika Kayastha

The recent exemption of retail health insurance from the goods and services tax regime has helped reduce premiums. But that alone is not enough to drive growth as the industry continues to battle issues such as high medical inflation, inadequate coverage, differentiated healthcare and claims experience, insurers said in a panel discussion at Mint's BFSI Conclave 2025.

"The premiums have come down by 18%. Does it mean that everyone is going to take insurance? No, that's not going to happen immediately. It's going to take time...price is one of the levers," said G. Srinivasan, managing director and chief executive officer at Galaxy Health Insurance, adding that there is a need not just for more people to buy health insurance but also increase their cover.

He believes the solution is for the industry to come out with products that are meaningful to customers and to focus on other areas of healthcare such as OPD (out patient department) costs. This could help health insurance become one of the first "pull products" in insurance, rather than a push product like other segments.

"The understanding of people about the need for health insurance is very high, but it has not materialized into everyone taking adequate health insurance," Srinivasan said.