As health insurance penetration in India remains low and government-spending on healthcare one of the lowest in the world, out-of-pocket healthcare expenses are high.

However, recent regulatory initiatives such as Use and File and open architecture are expected to give greater flexibility to insurers in product pricing, and thereby help increase insurance penetration.

In fact, standalone health insurers will grow faster than multiline general insurers—both public and private—because of a strong distribution network, specialised products and knowledge.