India, July 18 -- Health insurance sector is widely seen as a growth engine - and the numbers support that view. Premiums crossed Rs.90,000 crore in FY24, growing at over 18% CAGR over the past five years. Digital distribution is expanding, regulatory support is active, and consumer demand is rising, particularly after the Covid-19 pandemic.

But the model powering this growth is deeply flawed. Loss ratios in group and retail health insurance have breached 100%, indicating that insurers are paying out more in claims than they earn in premiums. Meanwhile, the system continues to overlook what consumers actually need: Affordable, accessible everyday care.

Over 65% of India's out-of-pocket health spending is for outpatient visits, diagnosti...