Why hospitals are eyeing health insurance business

As India seeks to deepen health insurance adoption, a few companies are combining treatment and care with medical coverage.

- Rwit Ghosh

Health insurance penetration in India remains low, according to Lancet.

(ISTOCKPHOTO)

As India seeks to deepen health insurance adoption, a few companies are combining treatment and care with medical coverage, promising improved outcomes and lower premiums.

Non-life insurance premiums, including health coverage, are expected to grow at an annual average rate of 13-15% in the medium, according to PwC. Such an increase makes consumers less likely to renew due to affordability concerns. Experts say that an integrated healthcare model may offer a solution.

“The future of health insurance and care is where the provider is an active partner,” said Ravi Vishwanath, director of Narayana Health Insurance, the insurance arm of publicly listed hospital network Narayana Health.

The company launched its insurance business in 2024, which is part of its integrated healthcare vertical. While the segment grew the fastest at 90% year-on-year in Q2 of FY26, it accounts for a very small portion of the business, contributing ₹190 million to the company’s total revenue of ₹12,331 million.