Tata AIG targets 30% annual growth in health segment over next 3 years

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Tata AIG General Insurance is eyeing a 30 per cent compound annual growth rate (CAGR) in its health insurance segment over the next three years, riding on enhanced focus on expanding its distribution network and improved product offerings. 

The health segment, which currently contributes 21 percent to the company’s Gross Written Premium (GWP), has seen strong growth in recent years, particularly from tier 3 cities and multiyear policies that now constitute 15 percent of its portfolio.

The company has witnessed a two-fold growth in its retail health segment over the past 2.5 years.

As part of its growth strategy, Tata AIG has now introduced five new riders addressing key healthcare needs such as mental health, cancer care, and women’s health.

These additions are intended to offer more flexibility to policyholders, with benefits like preventive screenings and outpatient care coverage.

Pratik Gupta, Senior Executive Vice President & Head– Agency at TATA AIG General Insurance Company Limited, emphasized the company’s commitment to innovation and growth: “The launch of these new riders is a critical step in our strategy to accelerate growth in the health insurance segment.”

“We are focused on driving expansion across India, particularly in tier 2 and 3 cities, where healthcare access and awareness are rapidly increasing. By scaling up our network of branches, agents, and hospital partners, we aim to make quality healthcare more accessible to millions, supporting our projected growth in health insurance.”

Tata AIG has also improved its claims settlement process, which is central to its strategy of building customer trust. Cashless claims utilization has risen to 76.95 per cent in FY25, with 96 percent of cashless claims processed within four hours. The company is targeting a 100 per cent cashless claims process in the coming years, underlining its focus on operational efficiency and customer satisfaction.

Also Tata AIG has significantly expanded its healthcare network, now encompassing over 11,700 hospitals across India, representing a 64 percent growth in the past 18 months. This expansion is aimed at providing better access to quality healthcare, particularly in underserved regions.