Health Insurance Premium Growth Slows Down Amid Corporate Hiring Slowdown

Mumbai: According to Satish Gidugu, CEO of India's largest third-party administrator, Medi Assist, a slowdown in corporate hiring is bringing down healthcare insurance premium growth, but it's being partly offset by employees opting for add-ons and additional covers.

Gidugu stated that the group premium growth in the first half of this fiscal year was around 11%, one of the lowest growth rates in a long time. This is despite the company predicting lower-than-expected growth due to corporate clients.

On the other hand, employee opt-outs are helping to drive revenue growth for Medi Assist. Many employees, working from home or in hybrid models, want to opt-in for services like teleconsultations and home lab visits that can be conducted locally and digitally. This trend has led to a significant increase in outpatient claims processed by the company.

Medi Assist's premium under management grew 18.1% year-over-year to ₹10,583 crore in the first half ended September. The group premium grew 15.6%, while retail premium jumped a whopping 41.2%. On top of these figures, the company's operating revenue grew 15.4%, reaching ₹348.5 crore, and its net profit rose by an impressive 65% to ₹40 core.

To strengthen its position in the market, Medi Assist is focusing on retail premiums for growth alongside group premiums. In August, the company announced it was acquiring a 100% stake in Fairfax-backed Paramount TPA for ₹312 crore. However, the merger is pending regulatory approvals, which are expected to be completed within the next three to four months.

Upon completion, Medi Assist will see its market share grow significantly, with an estimated 36.6% of group segment and 23.6% total health insurance industry by premiums managed by September's end.