Indians are increasingly choosing health insurance policies worth ₹1 crore or more as medical bills rise and awareness grows. Insurers say demand is accelerating because customers are willing to pay higher premiums for higher payouts, with GST-related pricing changes making larger cover options more accessible and easier to shop for.
India’s insurance regulator has rolled out a common empanelment system that asks all general insurers to onboard hospitals together under standardized terms and rates. Modeled on PMJAY-style empanelment, it could reshape bargaining power, reduce billing variation, and pressure insurers’ hospital costs. But the real impact on premiums and claims depends on adoption and contract enforcement.
Your news, in seconds
Get the Beige app — every story in 60 words, updated hourly. Free on iOS & Android.
A survey by Niva Bupa finds over half of young Indians exit health insurance within three years. While total premiums rose 9.1% to Rs 1.2 lakh crore in FY25, the number of lives covered grew only 1.4% to 58 crore. The widening gap points to rising costs and weak retention among younger policyholders.
India’s life insurance industry saw new business premiums rise 16% to ₹4.59 lakh crore in FY26. Analysts attribute the jump to GST relief benefits, increased demand for regular premium policies, and a deliberate tilt toward higher-margin protection and long-term savings products. The shift signals insurers are optimizing both growth and profitability as customer preferences evolve.
Swipe through stories, personalise your feed, and save articles for later — all on the app.
