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Rising claims pose challenge for health insurance sector in India
The Sunday Guardian
|August 25, 2024
The health insurance sector may face challenges in the coming months due to rising claims and increased competition, particularly in the retail sector, highlighted a report by Jefferies.
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"Health (approx. 35 per cent of mix) can see pressure in its retail segment from rising claims frequency and elevated competition" the report stated.
The report indicated that India's non-life insurance sector is experiencing significant shifts, the health insurance segment may face challenges as healthcare costs continue to rise and more consumers claim their insurance, and insurers are grappling with increased payouts. This trend could squeeze margins and put pressure on insurers to find ways to manage costs while remaining competitive in the market.
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