The State of Insurance and Healthcare in India

Every national holiday is an opportunity for us to reflect on the progress we’ve made as Indians. At a mission-driven company like Plum, this is a time to reflect on the development of the insurance and healthcare infrastructure in the country.

A statistic that startles everyone who sees it is the juxtaposition of the approximate population of Europe with the number of people in India who do not have health insurance – 700 million.¹

To be fair, India is massive and digging hard enough will unearth plenty of similar stats, which may not mean much.

So, why is this concerning?

Let me set the scene and zoom in.

• India has the highest medical inflation rate in Asia, 14%, that’s more than China (12%), Indonesia (10%), Vietnam (10%), and the Philippines (9%).²
• 50% of healthcare expenses in India are paid out-of-pocket. The global average is 20%.³
• 1 in 4 urban Indian households that have taken loans took them to cover medical expenses.⁴

The expenses are only increasing, and it’s a matter of grave concern. There’s a type of tweet that we spot every few months as more people realize the gravity of our situation:

https://twitter.com/sia_steel/status/1462286966565707790?s=20&t=I1LxLmO-bqcS2m5Wm4b5nQ

An average Indian household is just one serious medical incident away from slipping into poverty.

But wait, are Indians healthy enough for this to not matter? Let’s find out:

• 1 in 4 Indians have hypertension, a major cause of heart disease⁵
• 1 in 4 deaths is due to a cardiovascular disease⁶
• 1 in 6 couples is impacted by infertility⁷
• 1 in 5 adults have diabetes or are pre-diabetic⁸
• 1 in 2 Indians, above the age of 60, suffer from a chronic condition like diabetes, or cardiovascular disease⁹

I hope it’s clear that this is a serious challenge. One that cuts across our collective health, well-being, and finances.

Can we overcome this challenge?

I have reason to be optimistic.

The answer is at the core of Plum’s beliefs – making insurance and healthcare simple, inclusive, and accessible for all.

For the challenges, I listed above; there’s an equally firm resolve today to change the way things are. We’ve seen time and again talented, and ambitious Indians are keen to tackle the challenges in this space. Often because they’ve had a bitter experience with the crumbling healthcare systems themselves.

For the abysmal levels of insurance penetration in the country, there’s also rapidly increasing financial awareness among every class of Indians.

To their credit, the IRDAI has been matching pace with these developments. They’re playing an excellent role as a progressive and proactive regulator facilitating innovation and efficiency in the sector.

These factors give us the hope and optimism to change a lot of the legacy infrastructure from the ground up and overcome the challenges that plague us.

They are also a big reason why we decided to build Plum for India first.

What can you do to help?

As we celebrate Republic Day, all I request is to take a simple pledge for your health by reflecting on these questions.

• Have you done something good for your health and well-being in the last 3 days?
• Do you know the health issues you may be prone to?
• Have you scheduled a health checkup recently?
• Have you protected yourself and your dependents adequately with health insurance?
• Have you checked the details of your employer-provided health insurance and benefits?
• Have you encouraged your family and friends to get health insurance?

This is all we need to take a big, collective step towards a healthier and financially secure India.

Watch: The state of insurance and healthcare in India (2023)

Learn more about Plum here: www.plumhq.com

Join our mission to insure 10 million Indians by 2025: www.plumhq.com/careers

Know all about Plum Insurance

^{Note: The numbers and statistics are approximate and rounded off for simple visualization and representation.}

Sources

1. ^{"Even after adjusting for PMJAY (since the survey was done before PMJAY), estimates based on the survey suggest that nearly 50% of the population does not have health insurance" – Health Insurance for India's Missing Middle | 2021, NITI Aayog}
2. ^{India's medical inflation in 2021 highest among Asian countries: Report | 2021, Mint}
3. ^{2018-2019, exact: 48.2% and 18.1% – India’s persistently high out-of-pocket health expenditure continues to push people into poverty | 2022, DownToEarth}
4. ^{Longitudinal Ageing Study in India, Wave 1 | 2017-18, International Institue for Popular Sciences}
5. ^{India Hypertension Control Initiative, a high impact and low-cost solution | 2022, WHO}
6. ^{2016, Tackling the Burden of Cardiovascular Diseases in India}
7. ^{Across India, women are struggling to deal with the growing infertility problem | 2022, HerStory}
8. ^{India Diabetes Report 2000-2045 | International Diabetes Federation}
9. ^{55 per cent of Indians above the age of 60 suffer from a chronic disease, shows study | 2021, The Economic Times}

FAQ

Q. How does Plum plan to address the specific needs of those among the 700 million without health insurance, especially in rural or underprivileged areas?

A. Plum aims to extend its reach through digital solutions, making health insurance accessible even in remote areas. The company is also exploring partnerships with local organizations to educate and enroll individuals. This approach ensures that more people can access health benefits, reducing the gap in coverage.

Q. What innovative approaches is Plum considering to make health insurance and healthcare more accessible to the average Indian, given the high out-of-pocket expenses?

A. Plum is focusing on affordable plans and preventive healthcare to lower overall healthcare costs. The company is also integrating technology to streamline the claim process, making it faster and more efficient. This strategy aims to reduce out-of-pocket expenses and improve access to healthcare services.

Q. How is Plum working with regulatory bodies like IRDAI to facilitate the inclusion of preventive healthcare measures in insurance policies?

A. Plum actively collaborates with IRDAI to advocate for policies that support preventive healthcare. This includes lobbying for coverage of wellness and preventive measures within insurance plans. By working closely with the regulator, Plum seeks to influence the industry towards a more preventive healthcare model, benefiting all policyholders.