According to a report just released by BRICdata, the health and accident insurance market in India is expected to keep up its trend toward massive growth, and will see an increase of 22 percent over a span of 5 years.
The anticipated rise, along with the lower need for capital will form an appealing marketplace for new firms to start to take their place. The report also explained that the environment may also be quite attractive for new startups, as well.
Though the market is currently dominated by insurance providers in the public sector, the report showed that this won’t be able to stop the private insurers from taking significant steps upward and grabbing a sizeable portion of the market share by the end of the projections in 2015.
The report also stated that bringing in new possibilities for distribution could become a significant driving for forcing the total new policy volume exponentially upward.
BRICdata also said that the four public insurers currently make up over 50 percent of the market share of individual health and accident insurance, and their dominant weight will start to shrink throughout the period until the end of 2015.
The document suggested that the primary struggle that the new participants in that market segment will face is brand recognition. Therefore, the report advises these new entrants to ally themselves with brands that are better established, both local and foreign.
The reason that there has been so much growth in the individual health, supplemental health insurance and accident insurance segment in India is that there has also been a notable increase in economic prosperity, healthcare spending, and overall changes in lifestyle.