The India dental insurance market size was valued at $672.83 million in 2020, and is projected to reach $3,658.50 million by 2030, growing at a CAGR of 18.5% from 2021 to 2030.
Dental insurance is a type of contract that is represented by a policy and covers only the dental health or oral health of a person. Insurers have simplified their product offerings & made them straightforward with selective coverages and provide comparison of multiple dental treatments in terms of protection and premiums for selected coverages. Moreover, dental insurance reimburses several dental costs incurred by the patients and the insurers have been profiting from rise in number of individuals with high income, increased per capita earnings, and surge in working class population.
With rise in support for dental insurance from governments in the country, protection of dental insurers against fluctuations in revenues and prices, fuel the India dental insurance market growth. In addition, dental insurance covers numerous benefits, including treatment of infected nerves, tooth removal, minor surgical procedures, and drainage of minor oral infections. Thus, owing to increase in dental treatments, awareness toward oral hygiene has tremendously increased, which, in turn, propels the growth of the dental insurance market in India. However, convergence of dental and health insurance and development of dental vaccines & tough profit margins are some of the factors that limit the market growth. On the contrary, implementation of technologies can help enhance smooth claim process & prevent manual claim settlement processes, lower the risk of insurance frauds, and derive over diagnosis & diagnostic errors. Therefore, expansion of existing products & services and implementation of technologies are expected to provide lucrative opportunities for dental insurance providers in the upcoming years.
The report focuses on growth prospects, restraints, and trends of the India dental insurance market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the India dental insurance market industry.
The India dental insurance market share is segmented on the basis of coverage, type, demographic, and end user. By coverage, the market is segregated into Dental Preferred Provider Organizations (DPPO), Dental Health Maintenance Organizations (DHMO), dental indemnity plans, and others. Depending on type, it is divided into major, basic, and preventive. Based on demographic, the market is segmented into senior citizens, adults, and minors. On the basis of end user, it is bifurcated into individuals and corporates.
The report analyses the profiles of key players operating in the India dental insurance market such as Allianz, Aetna Inc., AXA, Cholamandalam MS General Insurance Company Ltd, Cigna HDFC ERGO Health Insurance Ltd. (Apollo Munich), ICICI Prudential, Life Insurance Corporation of India, MetLife Services and Solutions, LLC, and Tata AIG General Insurance Company Limited. These players have adopted various strategies to increase their market penetration and strengthen their position in the India dental insurance industry.
Dental Preferred Provider Organizations (DPPO) segment accounted for the highest market share in 2020
COVID-19 impact analysis
The demand for dental insurance in India has been moderate since consumers in the country do not consider dental insurance to be of great importance. In addition, dental insurance is usually covered under a regular health insurance policy, which may have either in-built OPD cover or has been bought as an add-on policy by the policyholder. Furthermore, economic recession and declined disposable income have led to insurers freezing sales of new coverages for dental insurance. These are becoming some of the major challenging factors faced by dental insurance providers and policyholders in the country.
Top impacting factors
Increased awareness of the oral hygiene
Rising awareness toward oral hygiene, which is one of the important aspects of human health, has resulted in massive demand for dental hygiene services in India. This, in turn, has boosted the need for dental insurance coverages, which propels the India dental insurance market growth. In addition, dental insurance covers numerous benefits, including treatment of infected nerves, tooth removal, minor surgical procedures, and drainage of minor oral infections. Thus, owing to increase in dental treatments, awareness toward oral hygiene has tremendously increased, which, in turn, propels the growth of the dental insurance market in India.
Major segment is anticipated to grow at a fastest CAGR
Development of dental vaccines & tough profit margins
The demand for dentistry services tend to decline gradually, due to consistent advancement & developments of vaccines for dental treatments. This has resulted in decline in dental treatments, thereby reducing the purchase of dental insurance coverages, which, in turn, is hampering the market growth. In addition, dental insurance cost in India is expensive and massive cost involved in the direct material used for dental treatment and unusual demand for dentistry have created major challenging for insurers to gain profit margin with the sold policies. Thus, all these factors collectively are expected to limit the India dental insurance market growth.
Untapped potential of emerging economies
Consumers in the country are highly demanding & often quote insurance for dental treatment in India due to increase in awareness about oral health and higher spending on dental treatments. Therefore, rise in demand from these emerging economies and alarming increase in prevalence of oral cavity & gum diseases among the growing population of India are expected to provide remunerative opportunities for the expansion of the market during the forecast period.
Minors segment is projected as one of the most lucrative segments.
Key benefits for stakeholders
- The study provides in-depth analysis of the India dental insurance market share along with current & future trends to illustrate the imminent investment pockets.
- Information about key drivers, restrains, & opportunities and their impact analysis on the India dental insurance market size is provided in the report.
- Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the market.
- An extensive analysis of the key segments of the industry helps to understand the India dental insurance market trends.
- The quantitative analysis of the India dental insurance market forecast from 2021 to 2030 is provided to determine the market potential.
India Dental Insurance Market Report Highlights
By End User
Key Market Players
Allianz, Cigna, HDFC ERGO Health Insurance Ltd. (Apollo Munich), ICICI Prudential, Cholamandalam MS General Insurance Company Ltd, AXA, Tata AIG General Insurance Company Limited, MetLife Services and Solutions, LLC, Aetna Inc., Life Insurance Corporation of India
Dental insurance market providers are looking forward to expanding their offerings and provide customized coverages for their customers. In addition, the products such as preferred provider organizations (PPO), dental health maintenance organizations (DHMO), and indemnity plans, are largely purchased in the market. Therefore, insurers have lucrative opportunities to innovate their existing plans and expand their product offerings in the untapped potential of emerging economies.
The India dental insurance market is consolidated with the presence of vendors such as Allianz, Aetna Inc., AXA, Cholamandalam MS General Insurance Company Ltd, Cigna HDFC ERGO Health Insurance Ltd. (Apollo Munich), ICICI Prudential, Life Insurance Corporation of India, MetLife Services and Solutions, LLC, and Tata AIG General Insurance Company Limited. The dental insurance market in this country is expected to experience significant growth in the future, owing to increase in awareness toward dental insurance and adoption of technology services in dental insurance product lines.