Indians prioritise insurance for protection against rising health costs

A third also reported buying more coverage to supplement their corporate health plans.

Almost half of Indians cited protection from escalating healthcare expenses as their primary reason for purchasing insurance, according to a Hansa Research.

Hansa Research has released the first edition of its Health Insurance Customer Experience Score (CuES) 2025 report, which assessed customer satisfaction and insurer performance across 12 health insurance brands in India, as reported by BestMediaInfo Bureau.

The study is based on feedback from over 3,800 respondents.

According to the report, the health insurance sector in India continues to expand, driven largely by rising medical costs and increased awareness since the COVID-19 pandemic. 

Around 30% of policyholders also reported buying additional coverage to supplement their corporate health plans.

The study highlights that customer experience is becoming a key differentiator amongst public sector insurers, private firms, and standalone health insurers. 

The overall industry Net Promoter Score (NPS) stands at 55%. 

Bajaj Allianz General Insurance recorded the highest NPS at 68%, followed by SBI General Insurance and ICICI Lombard General Insurance. 

High scores were linked to strong product offerings, digital support, efficient claims handling, and access to hospital networks.

The report also notes a shift in consumer expectations, especially amongst younger policyholders, who prefer personalised, flexible, and wellness-focused plans. 

These preferences are closely associated with higher satisfaction and brand loyalty.

Consumers continue to choose insurers based on coverage, brand reputation, and 24/7 customer service. 

Seamless digital experiences and round-the-clock support are especially valued by millennials.

Improved portability rules have given consumers more power to switch providers, pressuring insurers to enhance service. 

The top reasons for switching include premium hikes, lack of transparency, and difficult claims processes.

Claims experience remains a pain point, with more than half of respondents reporting issues such as limited hospital networks, delays in pre-authorisation, and slow payouts. 

These challenges are more pronounced amongst younger policyholders.

Amongst non-policyholders, key barriers include perceived lack of necessity, affordability concerns, and complex policy terms.