Outlook on health insurance sector: Star Health, ICICI Lombard top bets
The growth in the health segment was propelled by exponential growth in the government health business, which spurted 93% YoY. In July ’23, the gross written premium (GWP) for the industry grew 13% YoY to Rs 265 billion, fuelled by the health (up 33% YoY) and motor (up 15% YoY) segments.
In July ’23, marine and commercial lines reported flattish YoY growth.
SAHIs/private multi-line players reported a GWP of Rs 26.7 billion/Rs 146.6 billion in July ’23, up 26%/24% YoY. Conversely, PSU players registered a 5% YoY growth to Rs 84.8 billion, much lower than the industry.
Among key players, ICICIGI grew 22% YoY in July ’23 (higher than the industry growth), whereas Star Health reported a GWP growth of 17% YoY.
Bajaj Allianz clocked a GWP growth of 51% YoY (aided by exponential growth in government health business), whereas New India reported a YoY growth of 9%.
The health business jumped 33% YoY, with retail/group health segments reporting 18%/19% YoY growth. The overseas health segment rose 45% YoY whereas the government health segment soared 93% YoY.
Private multi-line players surged 131% YoY within the overall health segment.
However, excluding the exponential growth in the government health segment for Bajaj Allianz, the growth for private players came in at 25% YoY. Within the overall health segment, SAHIs reported 25% YoY growth.
Within retail health, care health surged 47% YoY; while within group health, Niva Bupa soared 93% YoY.
PSU multiline players posted 10%/8% growth in the retail health/group health segments.
The motor business grew 15% YoY, mainly driven by healthy growth in the motor own damage (OD) segment (up 22% YoY). Motor third party (TP) witnessed a soft growth of 11% YoY in July ’23.
Private multi-line
