India's insurance sector set to expand on plans of national healthcare cover
SINGAPORE – Ratings agency Standard and Poor’s says India's insurance sector is slated to get a boost following announcement of the Government's free health insurance plan. However, the potential impact of sweeping proposals announced in India’s latest Budget depends on implementation, S&P says.
"As always with grand policy initiatives in India, the question is whether the execution will be as towering as the ambition," said S&P Global Ratings credit analyst, Trupti Kulkarni.
Key proposals unveiled in the budget include a wide-reaching healthcare insurance scheme, an expansion in tax incentives for health insurance, and the merger of three public insurers.
“In our view, these and other initiatives reflect the Government's intent to expand the country's protection umbrella, and could have far-reaching implications for the domestic insurance sector,” S&P says.
“The proposed healthcare insurance programme is a milestone on the long-term goal of universal healthcare in India. While the Government has offered few details on the roll-out and financing of the scheme, we believe the proposal has the potential to be a game-changer for the health industry based on its sheer coverage size and scope.” www.standardandpoors.com (ATI).