The NHCX platform, developed by the National Health Authority (NHA), is designed to enhance the efficiency of healthcare claims processing under the Ayushman Bharat health initiative by facilitating real-time data exchange between healthcare providers, insurers, beneficiaries, and government bodies.
Amit Bhandari, chief technical officer at Magma HDI, noted that the adoption of the NHCX platform marks a significant step forward in the insurance industry, as it streamlines the claims process.
“We believe it will play a significant role in furthering the insurance movement in the country. It testifies to our belief that technology can provide impetus to India’s insurance sector,” he said.
He said that the platform aligns with Magma HDI’s strategy to support the government’s vision for the sector, and the company anticipates processing more claims through the portal.
“Our first claim settled through the portal further demonstrates Magma HDI’s capabilities to align its processes with the government’s vision for the industry. We look forward to settle more claims on the NHCX portal and become a part of the technological revolution that will positively impact India’s insurance sector,” he said.
Magma HDI is largely owned by Sanoti Properties LLP, which holds a 74.5% stake through joint ownership by Adar Poonawalla (90%) and Rising Sun Holdings Pvt Ltd (10%). The company offers a broad portfolio of over 70 insurance products, covering various categories such as motor, health, personal accident, home, fire, engineering, liability, and marine insurance.
India’s general insurance market is projected to grow to a gross written premium (GWP) of INR 4.89 trillion (US$57.3 billion) by 2028, up from INR 3.35 trillion ($40.36 billion) in 2024, according to a report by GlobalData.
This growth, with a compound annual growth rate (CAGR) of 9.9%, is expected to be driven primarily by the personal accident and health (PA&H), motor, and property insurance segments, which together accounted for 93% of the GWP in 2023.
GlobalData insurance analyst Swetansha Chauhan highlighted that the industry saw a 13.2% increase in 2023, supported by economic expansion, rising disposable income, and greater awareness of health and other general insurance products. This momentum is expected to continue, fuelled by ongoing regulatory reforms and increasing consumer demand.
The PA&H insurance segment is anticipated to be the largest contributor to the GWP in 2024, representing 39.5% of the market. This segment is forecasted to grow at a rate of 14.5%, driven by heightened health awareness following the COVID-19 pandemic and escalating medical expenses.
The segment is expected to maintain a CAGR of 12.5% from 2024 to 2028, supported by the anticipated introduction of a healthcare regulator in December 2023, which aims to standardise and oversee hospitals within the insurance ecosystem.
Motor insurance, which is expected to hold 31.1% of the GWP in 2024, is projected to grow by 10.4%. This growth is partly attributed to increased vehicle sales, which rose by 12.5% in March 2024 compared to the previous year, as reported by the Society of Indian Automobile Manufacturers (SIAM). The segment is likely to see further expansion due to a new vehicle scrapping policy that mandates the disposal of private vehicles older than 20 years and commercial vehicles over 15 years old.
Property insurance, accounting for 22.5% of the GWP in 2024, is also forecasted to grow by 10.4%, driven by an 11.1% year-on-year increase in government infrastructure spending, which is budgeted at $134 billion for the 2024-2025 fiscal year.
Chauhan remarked that the combination of economic recovery and rising disposable incomes would continue to drive growth in India’s general insurance industry over the next five years. She also noted that government initiatives and regulatory reforms would be crucial in increasing India’s insurance penetration.
