‘People don't trust those who sell insurance’: Nithin Kamath flags what’s really broken in India

Zerodha co-founder Nithin Kamath flagged India’s deep mistrust in health insurance but users say the real trouble may lie in how private equity is reshaping hospitals themselves.

In a post on X, Kamath wrote, “Historically, people haven't bought life and health insurance because of all the scams and spam. The trust deficit in insurance is way too high. People simply don't trust people who sell insurance.” He added he was “really happy” that his startup Ditto was working to fix that.

But the reaction online quickly turned the spotlight elsewhere. One user responded, “That’s a valid point on the trust gap. But what if the issue is less about dishonest sellers and more about the products themselves?” They argued that insurance’s jargon-heavy complexity often feels “intentionally confusing.”

Another user took the conversation in a different direction, linking the public’s mistrust not just to sellers or policy design—but to a deeper structural issue: the growing grip of private equity on Indian hospitals.

He shared a chart showing major PE stakes in India’s hospital chains. Arpwood Partners owns 100% of Sterling Hospitals. Blackstone holds 80% in KIMSHealth and 73% in CARE Hospitals. General Atlantic has 70% of Ujala Cygnus, while Advent International owns nearly 17% of Apollo Hospitals. Singapore’s Temasek controls 59% of Manipal Hospitals, and Indira IVF is 60% owned by firms based in Hong Kong and the U.S.

“PE are taking big stake in Indian hospitals,” the user warned. With India expected to see its 55+ population boom over the next two decades, he called hospital ownership “the new game in town.” But that game may already be creating friction: “In recent time this created some tussle between Hospital and Insurance companies.”