Healthcare is one of the fastest-growing industries in India and is the largest today in terms of revenues and employment statistics. Moving forward at a commendable rate of 22% CAGR, it is all set to expand to USD372 billion by 2022; a threefold jump from its current market size. The hospital industry is expected to grow at 16-17% CAGR and reach INR 8.6 trillion (USD 132.84 billion) by 2023.
The foremost factor contributing to the massive growth in the Indian healthcare sector is the rapid change in lifestyle leading to the emergence of various non-communicable diseases. Deaths by lifestyle diseases have doubled in a span of 12-13 years. Only 20% of India's population is covered under health insurance. Other substantial elements include a spur in demand for affordable healthcare, the emerging concept of mobile healthcare, improvement in technology, and innovative healthcare resolutions. Mergers and acquisitions to tap the huge market are also a reason for its growth. Further, government policies and tax reforms bring ease of doing business in the sector. India launched the world largest health care scheme Ayushman Bharat in the year 2018 for better health care protection for its citizens.
The growing opportunities come along with a burden of heavy risk to those involved in the sector. The growing claims on account of medical negligence, reimbursement risks, higher cost of medical indemnity, larger group insurance claims pose a challenge for manufacturers, druggists, hospitals, doctors, and other medical fraternities. High dependency on technology, cyber thefts, data security, and complexities arising from medical implants also need to be substantially covered to remain functional and gain profits. The need to partner with the most competitive insurance advisors and get adequately covered has become imperative for business success.
