High healthcare inflation and out-of-pocket expense ratio drive health insurance market growth

India is an underpenetrated market when it comes to health insurance and lags behind the global average. The health insurance market, which constitutes 35-37 per cent of the non-life insurance market, is anticipated to exhibit strong growth until FY29. India’s high healthcare inflation and out-of-pocket expenses (OOPE) as a percentage of current health expenditure (CHE) are structural drivers for this growth. CHE is the sum of public and private health expenditure, excluding capital investment in healthcare infrastructure