Citibank India has inked an agreement with Apollo Munich Health Insurance to provide healthcare solutions to its high-net-worth (HNW) clients.
Targeting 16 million households, the healthcare solutions will merge financial protection and health & lifestyle management support for non-communicable diseases such as hypertension, cancers, diabetes, heart disease, and tumors.
According to Insurance Regulatory and Development Authority (IRDA) of India, the health insurance premium market in the country grew by 16.57% in FY 2012/13. This implies that the level of penetration has been low relative to health expenditure.
As per data by McKinsey, health expenditure in the country stood at around Rs3trn, of which out-of-pocket spends contributed to a 61% of total health care expenditure.
Citibank India deputy country business manager for global consumer bank, Kartik Kaushik, said: "The higher out-of-pocket expenditure of around 61% incurred by consumers to address medical and health needs, coupled with around 38% of emerging affluent without health insurance, demonstrates the potential to serve this segment."
Apollo Munich Health Insurance CEO, Antony Jacob, added: "The needs of the urban mass affluent and affluent segments are significantly underserved. Only 20% of the urban population has some form of health insurance.
"At present, there is no comprehensive solution available in the market that provides integrated financial protection and health and lifestyle management solutions."