Navigating the Rising Tide: Health Insurance Trends in India

According to the Hansa Research CuES 2025 report, nearly half of health insurance buyers in India purchase policies primarily to safeguard against escalating healthcare expenses. Medical inflation remains a fundamental concern, leading consumers to seek not only financial protection but also access to quality healthcare and improved outcomes.

Interestingly, the report notes a growing trend where about 30% of policyholders are supplementing their corporate health insurance with additional personal policies, spurred by rising treatment costs. As competition intensifies among public sector insurers, private firms, and standalone providers, prioritizing customer experience becomes crucial.

The report underscores a shift in consumer needs towards flexible, personalized, and wellness-oriented plans, especially among digital-savvy individuals. Preferences are swayed by comprehensive coverage, brand trust, and 24/7 customer service. Younger millennials value seamless digital experiences and switching flexibility, prompting insurers to enhance overall customer journeys.

Leading reasons for changing insurers include rising premiums, lack of transparency, and inadequate claims service, with 55% expressing dissatisfaction over hospital network limitations and slow payouts. These issues are particularly pressing among millennials seeking efficient, cashless claim processes.

Barriers to purchasing insurance include misunderstanding benefits, affordability challenges, and complex policies. The report suggests clear communication, simple onboarding, and affordable mini products to boost coverage. Overall, the Indian health insurance sector must enhance transparency, service quality, and digital innovation to cater to consumer demands.

(With inputs from agencies.)