Mumbai's Healthcare Insurance Premiums Growth Show Signs of Slowing Down Amid Rising Employee Preferences

In a recent interview with Mint, Satish Gidugu, CEO of India's largest third-party administrator Medi Assist, revealed that the growth rate of corporate hiring is slowing down, resulting in lower growth rates for healthcare insurance premiums. However, he noted that employees are taking advantage of add-ons and additional covers beyond what their employers offer, partially offsetting the slowdown.

According to Gidugu, the industry's group premium growth during the first half of this fiscal year stood at 11%, one of the lowest growth rates in a long time. Despite this, Medi Assist saw its own premium under management grow 18.1% year-on-year to ₹10,583 crore, with retail premiums jumping 41.2% on-year.

This surge in demand for retail premiums is largely due to employees opting for flexible policies and additional covers, allowing them to access locally and digitally available services such as teleconsultations and home lab visits. The company's operating revenue grew 15.4% year-on-year to ₹348.5 crore, while its net profit rose 65% to ₹40 core.

To further capitalize on the growing demand for healthcare insurance, Medi Assist is focusing on retail premium growth in addition to group premiums. In August, the company announced plans to acquire Fairfax-backed Paramount TPA, aiming to expand its market share in the industry.

With regulatory approvals expected to take 3-4 months, Indiabulls House will be increased to a total value of ₹500crore and an increase from 23% to 36.64%.