Credit rating agency, India Ratings and Research (Ind-Ra) in its latest report has said that the health insurance segment, which expanded at a remarkable CAGR of 20% over FY15-FY20, to continue witnessing strong growth, supported by low penetration.
As per the report, the sector is expected to grow at higher double-digits in the medium term, with private players growing even faster as they have been gaining market share over public sector firms and also because of the increase in premium prices due to medical inflation.
Ind-Ra further noted that within the health segment, as firm achieves adequate size and scale, with adequate control on claim volatility, profitability can be consistent. This has resulted in adequate growth capital support coming from investors. The volatility in the claim ratio has been within a specific range, thereby enabling insurers to make the necessary predictions while designing policies.