Why Are There More Health Insurance Providers on the Ground Than Listed on the IRDAI Website?
When visiting the official website of the Insurance Regulatory and Development Authority of India (IRDAI), you will notice only 7 number of health insurance companies are explicitly listed under the category of health insurers. However, on the ground, the number of entities selling health insurance policies seems to exceed this count, including banks like SBI, HDFC, and others. This discrepancy can be explained by understanding the different types of entities and their regulatory categorization:
1. Standalone Health Insurance Companies
The IRDAI lists a specific category of insurers dedicated exclusively to health insurance. These are known as standalone health insurance companies, and there are currently only seven such companies in India.
Examples: Aditya Birla Health Insurance Co. Ltd., Care Health Insurance Ltd (formerly known as Religare Health Insurance Co. Ltd.),Galaxy Health and Allied Insurance Co., Narayana Health Insurance Ltd.,Manipal Cigna Health Insurance Company Limited, Niva Bupa Health Insurance Co Ltd. and Star Health & Allied Insurance Co.Ltd.
2. General Insurance Companies Offering Health Insurance
General insurers (non-life insurance companies) are also allowed to offer health insurance products alongside other insurance types like motor, travel, and property insurance.
These companies are not listed under standalone health insurers but are major providers of health insurance policies.
Examples: New India Assurance, ICICI Lombard, Bajaj Allianz.
3. Bancassurance and Partner Companies
Entities like SBI and HDFC do not directly underwrite health insurance policies. Instead, they operate under the bancassurance model, where they distribute health insurance products as corporate agents or partners of registered insurance companies.
Example: SBI General Insurance partners with SBI for health insurance policies.
4. Web Aggregators and Brokers
Many companies visible on the ground or online act as intermediaries (brokers, agents, or web aggregators) authorized by the IRDAI to sell health insurance products. These entities do not underwrite policies but facilitate the sale of insurance products from IRDAI-registered insurers.
5. Subsidiaries and Branding
Some financial institutions, such as HDFC Ergo or SBI General, have subsidiaries offering health insurance. These subsidiaries are licensed under IRDAI but might not appear in standalone health insurance listings if they are categorized differently.
Conclusion
The IRDAI website categorizes health insurers based on their primary business models and licenses. While only a limited number of standalone health insurers are listed, the ecosystem on the ground includes general insurance companies, bancassurance partners, and other intermediaries, significantly increasing the visibility of health insurance offerings. This layered structure ensures a wide reach of health insurance products while maintaining regulatory oversight by the IRDAI.