The expanding health insurance landscape in India's Tier 2 and Tier 3 cities

In India, the current health care system is experiencing drastic developments as it has changed completely from what it was until a few decades back. The situation is vastly altering especially in the Tier-2 and Tier-3 cities where more and more people are getting covered under comprehensive health insurance policies. There is a constant increase in awareness for quality healthcare in Tier 2 and Tie 3 cities. Today, preventive healthcare methods are becoming a preferred option in our country which is still at a developing stage. The proportion of customers showing interest in health insurance has increased by in the last 3 years. As per industry experts, the Indian health and wellness industry is approximately a 3-billion-dollar market and is expected to grow by 6.5 billion dollars by the end of 2022. Interestingly, the contributions from the Tier-2 and Tier-3 cities are a major growth factor. There are numerous other growth factors responsible for the booming of the Indian health insurance industry. One of the most prominent factors is 'awareness' that has instigated the people to cover themselves under an adequate health insurance policy that gives them comprehensive coverage. Moreover, the stressful and unhealthy lifestyle that most people tend to follow these days has led to a significant increase in the incidence of lifestyle related ailments that include diabetes and hypertension.

According to recent survey findings, about 65 million people in India suffer from diabetes, and the number is expected to cross 109 million mark by the end of 2035. Overall, our country accounts for 17% of the Global Diabetes Burden with at least 1 million people dying each year due to diabetes since 2013. Apart from diabetes, India even has the highest number of patients with cardiovascular diseases and mostly the most productive workforce i.e. people from 35–65 years of age are affected by such ailments. Considering the available data, it is important to take preventive measures and live a healthy life. Taking an adequate health insurance cover insures adequate coverage for future medical expenses.

The ever rising demand for the health and wellness services in India has even allowed numerous health insurers to invest in this industry that certainly carries huge potential. While people are getting quite health conscious, even the insurers are coming up with new and highly innovative products and services that widely attracting new age consumers. Moreover, the transformation has forced insurers to enhance their products and services in order to cater to their health-conscious population audience. The insurers have even enhanced their network of hospitals in Tier 2 and Tier 3 cities so that customers can avail quality healthcare services.

In the last couple of years, there has been a significant rise in the number of people taking health insurance policies especially in the Tier II cities as people there are become more health conscious. As per a recent survey report, Tier II and III cities are witnessing over 20% growth in the number of health insurance policies bought of people. One such product that dedicatedly caters to the needs of people residing in Tier II and Tier III cities is Max Bupa's Health Insurance's Health Plus plan which is easy on pocket and good for health.

The new Max Bupa Health Pulse safeguard's your family's health and well-being as the plan provides adequate coverage for hospitalization expenses that include pre & post hospitalization expenses as well, along with day care treatment, organ transplant & alternative treatment like AYUSH. The plan even allows annual health check-up after your first renewal. Several other prominent features of the plan include re-fill, no claim bonus and pharmacy and diagnostic booking services, critical illness cover, hospital cash and e-consultation service. As the hospitalization and healthcare charges in the Tier II and Tier III cities are comparatively cheaper than Tier I cities, the premium of the plan is also decided keeping in mind the healthcare expenses in Tier II and III cities.

The writer is business head, health insurance, Policybazaar.com