August 4, 2025 |
A new pan-India survey by HDFC Ergo General Insurance reveals that over 61% of Indians aged 20–35 now consider health insurance a top financial priority, driven by rising medical costs and increased health awareness post-COVID.
The survey, which polled more than 12,000 urban respondents across metros and Tier-II cities, also found that 37% of respondents prioritize cashless hospitalization networks when choosing an insurer — marking a significant consumer tilt toward digital-first, hassle-free health coverage.
Youth-Led Demand for Health Security
The data indicates a clear generational shift in mindset: young professionals and first-time earners are actively choosing to secure health coverage early, rather than relying on employer-provided group policies.
According to the survey:
- 61% of respondents aged 20–35 said they want independent health insurance coverage
- 48% of women in the age group expressed interest in policies that cover maternity and OPD care
- 30% said they learned about the importance of insurance only after seeing a major health event in their family
Commenting on the survey, Anurag Rastogi, Chief Marketing Officer at HDFC Ergo, said that “young people today are more aware of their finances and want health coverage that protects them from big medical bills.“
Cashless Network Now a Dealbreaker
A particularly striking insight: 37% of respondents said that a wide and reliable cashless hospital network was the #1 feature they look for in a health policy — even ahead of low premiums.
With hospital bills skyrocketing in metros, consumers say they are tired of waiting for reimbursements and want real-time approval and paperless claims.
The report noted that people now trust insurers who make things quick and easy. The old way of paying first and waiting for weeks to get money back just doesn’t work for today’s customers.
The Rise of Digital-First Buyers
- Over 54% of health insurance purchases in the 20–35 age group happen entirely online
- Among Tier-II cities, Patna, Indore, and Kochi saw the highest first-time health policy sales
- Mental health coverage, wellness apps, and no-claim bonuses were other growing features of interest
Insurers Respond with Tech-Led Products
In response to this trend, HDFC Ergo and other leading insurers are:
- Expanding cashless hospital tie-ups
- Offering AI-powered claim pre-approvals at hospitals
- Bundling preventive care like free health checkups, diet consults, and app-based fitness tracking
These innovations are not just improving access — they’re also increasing renewal loyalty and cross-selling opportunities, especially in metros and digital-savvy markets.
Top Priorities for Health Insurance Buyers (Age 20–35)
This data-backed shift in consumer expectations is sending a clear message to the industry: today’s health insurance buyers are younger, digital-first, and driven by experience — not just price. And they want protection that works in real-time, not just on paper.
As more young Indians become aware of their healthcare needs, many are also exploring better options by switching insurers. Here’s how you can port your health insurance policy in India without losing benefits.
