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Rising medical costs and growing health awareness are changing how Indians approach health insurance. More people are buying cover early, opting for higher sums insured, and using digital platforms to manage policies, according to Care Health Insurance’s Annual Trends Report 2025.
The report points to a clear shift from reactive purchases to more planned and preventive healthcare decisions, with technology playing a central role.
More Indians getting insured, and for higher amounts
The number of insured members rose by over 27 per cent between underwriting years 2023-24 and 2024-25, highlighting increasing awareness around the need for comprehensive health cover amid rising hospital expenses.
Coverage levels are also going up across age groups. Families are opting for higher sums insured for children, with the average cover for the 0-17 age group rising by more than 7 per cent year-on-year. Young adults aged 18-35 continue to form the largest group of first-time buyers, accounting for over 30 per cent of all policyholders in 2025-26.
At the same time, senior citizens are becoming a more visible segment. The share of policyholders aged 60 and above increased to nearly 14 per cent, reflecting a growing need for financial protection against age-related healthcare costs.
Claims data shows changing health risks
Claims trends indicate a mix of seasonal illnesses and long-term lifestyle conditions. Dengue, malaria and common flu continue to account for a large number of claims, while respiratory infections, heart-related ailments, cancer and arthritis are also rising.
High-value claims linked to cardiac care and cancer treatments suggest increasing medical complexity and costs, reinforcing the importance of adequate insurance cover rather than bare-minimum policies.
Digital engagement becomes the default
Policy servicing is rapidly moving online. Website visits with strong purchase intent have more than doubled over the past three years, while digital premium payments have increased by nearly 10 per cent.
Mobile apps are now a key service channel. Around 30 per cent of claims were filed through Care Health’s customer app in the past year, and over 15 per cent of renewals were completed via the app. Customers are also using digital tools to locate hospitals, book health checks and manage policies.
Preventive health features are gaining traction as well. Usage of step-tracking tools linked to renewal discounts has increased 2.5 times, showing that wellness-linked incentives are influencing behaviour.
What insurers are responding to
Consumers are increasingly looking beyond basic hospitalisation cover. Demand is rising for top-up plans, OPD benefits, teleconsultations, home care and cashless hospital networks.
Commenting on the findings, Manish Dodeja, chief operating officer at Care Health Insurance, said consumers are becoming more proactive and tech-savvy, with a clear preference for preventive care and digital-first insurance experiences.
For policyholders, the trend underscores a simple takeaway, health insurance is no longer a distress purchase. It is becoming a planned financial decision, shaped by lifestyle risks, ageing, and the convenience of digital access.