Are you a health freak who hits the gym religiously all day of the week? Then, you will find this to be an interesting read. The demand for low-cost health insurance has seen a steep surge amongst the younger population- we significantly mean the GenZ population. The demand for low-cost Health insurance has seen a steep surge of 24 percent among GenZ, which is reflecting a rising awareness of financial security, preventive healthcare, and escalating medical costs. This surge in Health Insurance highlights the importance of the growing awareness about Health insurance in India and the consciousness about paying attention to individual health. Let’s decode more about this.
What’s Prompting the Younger Population to Adopt Health Insurance?
Health insurance is no more an option that the GenZ and women are considering, this is escalating to be an increased necessity. In the last two years, there has been a significant rise in low-cost health insurance plans, especially among the GenZ and women. With the increasing demand for such plans, there is an enhanced spotlight that is being thrown upon financial security, preventive healthcare, and rising medical expenses. The younger demographics are now favoring flexible policies and digital engagement to increase the adoption of low-cost Health insurance. With this need for flexibility and digitization, the GenZ population is looking for convenience and security in a nutshell.
This demand aligns with the broader industry trend where 50 percent to 60 percent of GenZ customers are seeking better online insurance services. As GenZ looks for convenience and security, women increasingly acknowledge the growing necessity of adopting Health insurance. For instance, the demand for maternity insurance and OPD coverage has significantly increased even in the smaller cities which is contributing to 10-12 percent of policy purchase among women.
Throwing the Spotlight on Women for Surge in Health Insurance
In an impressive feat, women are now accounting for 30 percent of policyholders reflecting a growing emphasis on financial independence and Health awareness. The demand for low-cost insurance among women has risen by 10 to 12 percent among women and the highest adoption has been within the age group of 31-40 age group. Many women especially the younger ones are increasingly opting for policies with OPD benefits and are demonstrating a more inclined approach towards health insurance.
How Affordability and Accessibility Are Becoming the Key for Surge in Insurance Uptake?
Affordability and accessibility are some of the key factors that are contributing to an increase in Health insurance uptake. For instance, the budget this year also significantly focused on affordability and accessibility as one of the key reasons to increase insurance uptake. The states of Uttar Pradesh, Gujarat, and Maharashtra, which together account for 47% of the customer base of Health insurance products, witnessed a steep rise in Health insurance as the affordability and accessibility factors become more important for Health insurers to develop products. As women are taking an active step towards becoming conscious about Health, senior citizens are also opting for these health insurance plans.
In fact, 10% of senior citizens have gone for affordable health insurance plans which offer a premium that is lower than 70% of the traditional policies. This addresses chronic disease management and the coverage gaps.
How Can Insurers Further Cater to the Younger Demographics for Increasing Insurance Uptake?
Insurers can increasingly cater to the younger demographics by offering more digitized insurance services. Let’s take a closer look at how insurers can further enhance insurance uptake:
More Technology Based Options
Offering technology-based services in insurance is a no-brainer! But, thinking beyond just offering technology-based services is where the health insurers need real brainstorming. To cater to the younger demographics, insurers need to understand the importance of technology in the millennial and the GenZ generation. In an interesting fact, more than 97% of Millennials own a smartphone and GenZ gets more than seven hours of screen time on their mobile devices per day.
This escalates the customer expectations to high-quality digital resources from the Healthcare providers. An example of active application of this factor is that the policyholders are increasingly taking advantage of technology to book appointments, refill prescriptions, get medication reminders and even search for health insurance quotes. That’s how the health insurance market is increasingly resorting to technology-driven operations.
Personalized Offering
The traditional strategy of the one-size-fits-all structure of traditional group Health insurance. The younger generation is increasingly dissatisfied with the clinical quality of medical care which they have been receiving. They need more flexible options and control over their healthcare options. Offering personalized offerings and leveraging technology to do so will turn out to be the ultimate game-changer.
Instant Access to Health Data
The rise of technology is not just limited to accessing Health Insurance services online. Millennials and GenZ are desperately looking to understand the healthcare trends and health-related key information before they proceed towards purchasing a health insurance policy. In this scenario, offering tailored policies and substantiating policies with a bonus of offering health data will help enhance the customer experience and also help them gain good insights into the latest healthcare trends. In 2025, it’s all about creating value that will help in building long-term customer relationships.
Conclusion
The insurance landscape is changing, and insurers are widely acknowledging the growing need for digitization with these technological adoptions, Health insurers will be able to understand the evolving customer demands even better and contribute to increasing health insurance uptake even better.
