More senior citizens opt to port health insurance policies: Experts

Innovation, digital ease driving the shift, say insurers

Portability of health insurance policies among senior citizens is on the rise, driven by new and innovative products with additional coverage options, experts said. The practice has nearly doubled over the past two years.

 

According to data from PolicyBazaar, portability among senior citizens increased to 29 per cent of total health policies in 2024-25, up from 18 per cent in 2022-23. This sharp jump is credited to more seniors switching insurers in search of better coverage, improved claim support, and protection from steep premium hikes.

 

“There are a lot of new products coming into the industry because regulators have introduced the ‘use and file’ system. It is now easier to launch a product,” said Ankur Kharbanda, executive director and chief business officer, Niva Bupa Health Insurance.

 

“When a new product enters the market, it is usually better than earlier ones because of added innovation. With so much innovation happening, customers naturally tend to explore their options. The discussion around portability has grown, with some companies attracting higher portability through new products, while others retain customers with their upgraded offerings. Although portability has risen, the increase is not considerable enough to cause concern,” Kharbanda added.

 

The Insurance Regulatory and Development Authority of India first introduced guidelines on health insurance portability in 2011. Under these norms, policyholders can shift to another insurer offering a similar product at the time of renewal, without losing the benefits accumulated with their existing policy. Earlier, switching insurers or plans meant losing such credits, and policies had to start afresh with all waiting periods reinstated.

 

Despite being in place since 2011, portability was not widely used in the early years due to lack of awareness, perceived complexity, and fear of rejection by new insurers, said Priya Deshmukh, head of health product, operations, and services at ICICI Lombard. However, the concept has gained traction in recent years.

 

“Portability has picked up pace, especially among urban, tech-savvy, and financially literate consumers. Regulatory support and digital platforms have made the process easier and more transparent. In the past three years, we’ve seen over a 60 per cent rise in health insurance portability among senior citizens. This shift is largely due to the demand for more inclusive coverage, wider hospital networks, and better services. As insurers, it is our responsibility to make portability seamless and accessible, especially for older adults who rely on timely healthcare,” she said.

 

Insurers said that even as they see a rise in portability among senior citizens, they are also focusing on improving customer retention through better servicing and stronger claims support.