The Evolving Landscape of Health Insurance in India: Trends, Challenges, and Opportunities

Nearly half of India's health insurance buyers seek coverage to counteract rising healthcare costs, reveals a 2025 Hansa Research report. As medical inflation and treatment expenses grow, Indians increasingly opt for personal policies, emphasizing flexibility and digital solutions to improve customer satisfaction and broaden access across demographics.

In India, nearly 48% of health insurance purchasers cite rising healthcare expenses as their primary motivation, according to the Health Insurance CuES 2025 report by Hansa Research. With medical inflation a significant concern, consumers now view health insurance as essential not only for financial security but also for obtaining quality care and improved health outcomes.

The report also revealed a trend where approximately 30% of policyholders enhance their corporate insurance with personal policies, driven by the need for broader coverage amid escalating treatment costs. The competitive health insurance market, featuring public sector, private, and standalone providers, underscores the growing priority of customer experience.

Consumers today, especially those with a digital-first approach, demand flexible, personalized, and wellness-oriented plans. Their preferences hinge on critical illness coverage, plan flexibility, and the brand's credibility, coupled with access to 24/7 customer support. Millennials particularly value seamless digital interactions and round-the-clock assistance, pushing insurers to enhance value throughout the customer journey.

The report cited rising premiums, lack of transparency, and poor claim experiences as top reasons for switching insurers. Claims remain a pivotal concern, with 55% of claimants facing issues like limited hospital networks and slow payouts. Millennials, with their demand for swift and straightforward processes, underscore the need for improved digital and operational systems.

Despite awareness advancements, obstacles such as misunderstandings of benefits, affordability, and complex terms persist, preventing broader adoption. The report suggests clearer communication, simplified onboarding, and affordable mini insurance products as solutions. The study concludes that Indian insurers must enhance transparency, service, and digital innovation to cater to evolving consumer demands.

(With inputs from agencies.)