Around 65 per cent of health insurance policy holders in the country are covered by private insurers while public sector insurers cover only 35 per cent of this population, according to a study. However, in terms of premium collection, the equation is inverted as public sector insurers account for over 61 per cent in health premium income, said the study titled ‘Health Insurance in India: A review,’ conducted by industry chamber Assocham.
In terms of channel-wise distribution of medical insurance, individual agents bring in majority of business with 72.9 per cent share, the study said. However, direct business is the major contributor to premium collection with around 37 percent share, followed by individual agents at 31.6 per cent and brokers at 21.4 per cent.
The study added that addressing the coverage gap is a huge challenge for the industry due to low public spending on health along with high levels of informal or unorganised labour, a large dispersed rural population, high levels of poverty and fewer providers serving the poor.
