The popularity of health insurance in India is continuously witnessing a significant rise. However, it must be noted that this rise is not just due to new policies; in fact, health insurance renewals are equally shaping the pathway for this growth. It is one thing to get a health insurance plan, and another to ensure that you are consistent with the coverage. The growing trend of more people renewing their health insurance policies highlights the positive shift of people prioritising their health.
Health insurance renewals have reached record high in FY26
Renewals in health insurance are a key indicator of trust in the health insurance system. As cited by ANI, a recent survey report highlights that health insurance renewals in India are at their highest levels. Gone are the days when people would search for what is health insurance. Today, people have become more aware of and responsible for their health. In fact, customers are now more curious about the new-age, modular benefits offered by health insurance companies in India.
Better health insurance products
Many factors have contributed to this growth trend, the major one being the introduction and expansion of consumer-friendly products. These new-age health insurance plans provide long-term value to the customers by catering to people of all age groups and tier-cities through specific features like coverage of pre-existing diseases, reduction in waiting periods, cumulative bonuses, discounts on renewal premiums, EMI premium payment options, etc.
For instance, most plans now offer wellness benefits that allow the insured to obtain an extra discount on policy renewal through an active, healthy lifestyle. This policy feature is in line with the youngsters who are getting more and more inclined toward fitness activities like walking, running, swimming, sports, etc.
Focus on health after COVID-19 pandemic
The COVID-19 pandemic made people realise the importance of good health. After it, people started prioritising their well-being and focusing more on ensuring a healthy lifestyle. Another thing it highlighted is the need to be financially prepared for such pandemics.
Hence, a major positive shift took place in the health insurance sector after Covid, as more and more people now look forward to safeguarding themselves financially. People have now become careful about renewing their health insurance policies to ensure they are always protected.
Digitalisation
Digitalisation in India witnessed a rapid shift after COVID, when almost everything came to the online platform. With the introduction of UPI payments and specific online mobile apps for health, it has become easy for customers to buy, view and renew their policies.
Better IRDAI guidelines
The IRDAI continuously revises its guidelines to ensure that customers are offered standard products and services that are truly beneficial to them. The latest IRDAI rule of exempting GST on health insurance has made it more accessible for the common man. Its implementation of stricter guidelines ensures that all health insurance processes (buying, renewal, claim, etc.) are simple and customer-friendly.
Rise in government health insurance plans
The introduction of government health insurance plans like Ayushman Bharat provides various medical benefits and services to the economically weaker section for free or at an affordable cost. Such government initiatives help health insurance reach at the grassroots and encourage people to always keep themselves covered under health insurance.
Higher medical inflation cost
Did you know the medical inflation costs in India are higher than the global average? This implies that India’s healthcare costs are rising more than anywhere else in the world. Higher medical costs require people to be better planned and financially prepared well in advance before any medical crisis happens.
Youngsters are driving the health insurance growth trend
A recent survey report issued by Policybazaar on Insurance Awareness Day 2025 highlighted that, despite their younger age, nearly 70% of Gen Z reported higher confidence in understanding health insurance. They consider health insurance to be an important financial tool necessary for a peaceful life.
Signing up early helps them understand the benefits of health insurance at a young age, propelling them to continue with their policies without fail. Youngsters, thus, have become a driving force for growth in policy renewal as they know why they should not miss a day without its coverage.
Conclusion
The rising health renewals in India clearly highlight the shift of people becoming more cautious about their well-being and why they are choosing to stay insured year after year. This trend paves the way for an impactful Indian health infrastructure where people are prepared to protect themselves from unexpected medical emergencies and exorbitant medical costs.
Ensuring you renew your health insurance on time allows you to have a financial safety net for your medical needs continuously. It is not just a trend that would fade away with time; instead, it is here to stay for a long time with a strong impact.
