New Delhi, Feb. 5 -- Group health insurance receives far less attention than retail health. Yet it is the backbone of India's health insurance industry.

Group policies account for nearly 60% of total health insurance premiums. For general insurers, group health makes up about 74% of their health portfolios. For standalone health insurers, the share is much lower, around 23-24%. Despite this scale, group health is often treated as a secondary business, even though its economics shape the industry's long-term viability.

The two segments operate on very different cost structures. Group health typically carries higher loss ratios but lower intermediation costs. In contrast, retail health has lower loss ratios and significantly higher acquis...