Nearly half of health insurance buyers in India cited rising medical expenses’ as reason for purchasing insurance: Report

NEW DELHI: Nearly half (48 per cent) of health insurance buyers in India say they purchase policies mainly to protect themselves from rising healthcare expenses, according to the latest Health Insurance CuES 2025 report by Hansa Research.

The report showed that medical inflation is a major concern for consumers today, prompting many to see health insurance not just as a financial backup but also as a way to access quality healthcare and better health outcomes.

Interestingly, it also mentioned that nearly 30 per cent of policyholders are now choosing to supplement their existing corporate health cover with additional personal policies. This highlighted a growing awareness about the need for broader coverage, especially in the face of rising treatment costs.

As the health insurance market in India becomes more competitive, with a mix of public sector insurers, private companies, and standalone health insurance providers, focusing on customer experience has become more important than ever.

The report also highlighted that customer needs are evolving rapidly. It points out that today’s consumers, especially those with a digital-first mindset, prefer flexible, personalized, and wellness-oriented insurance plans.

Consumers are also becoming more selective about the health insurance brands they choose. Their preferences are influenced by the range of coverage offered, especially for critical illnesses, the flexibility of plans, a trustworthy brand image, and easy access to 24/7 customer service.

Notably, younger millennials place greater value on round-the-clock support and smooth digital experiences.

The ability to easily switch between insurers has given more power to policyholders. As a result, insurers are being pushed to deliver better value throughout the customer journey, not just at the time of purchase.

The report stated that the top reasons for switching providers include rising premiums, lack of transparency, and poor claim experiences.
Claims continue to be a major area of concern, with 55 per cent of claimants reporting issues such as limited hospital networks, pre-authorization delays, and slow payouts.

These challenges are more prominent among millennials, who expect quicker and simpler processes. A smooth cashless claim experience is strongly tied to overall satisfaction, underlining the need for better digital and operational systems.

Despite growing awareness, many people still do not buy health insurance.

The report said the main reasons include not understanding the benefits, affordability issues, and complicated terms and conditions. To bring more people under health insurance coverage, the report suggested clear communication, simple onboarding, and affordable mini insurance products.

Overall, the Hansa Research study showed that the Indian health insurance industry must focus on transparency, better service, and digital innovation to meet the evolving needs of consumers. (ANI)