A recent survey conducted by HDFC ERGO General Insurance and NielsenIQ (NIQ) has shed light on the attitudes and preferences of India’s Gen Z and Millennials towards health insurance. The survey, which covered 2,200 respondents across 17 Tier 1 and Tier 2 cities, found that 61% of young people prefer to invest in health insurance, with 37% citing rising medical costs as the primary reason and 36% seeking extra wellness benefits such as health check-ups.
However, despite the high interest in health insurance, a significant barrier remains: lack of awareness. Among the 167 Gen Z respondents, 44% reported not buying health insurance due to a lack of understanding about the product, while 43% of Millennials believed their company’s group cover was sufficient, prompting them to forgo separate personal health insurance. This highlights the need for increased awareness and education about the importance and benefits of health insurance.
The survey also revealed that young people in India’s major cities prioritize certain features when it comes to health insurance. For instance, over 50% of respondents in Kolkata, Bengaluru, Mumbai, and Chennai expect policies to cover pre-hospitalization expenses as standard. Additionally, flexibility in premium payment options is highly valued, with around 30% of respondents in Hyderabad and 29% in Mumbai seeking such flexibility.
Interestingly, despite being tech-savvy, India’s youth still prefer human interaction when buying insurance. A significant 67% of Gen Z respondents reported needing support when choosing a plan, and 60% stated that they prefer to buy insurance offline, primarily due to their trust in agents. This underscores the importance of a strong agent network in reaching and serving young customers.
When selecting a health insurance plan, young people prioritize factors such as hospital network size (27%), simple and clear policy terms (24%), and recommendations from friends, family, and online comparison sites. The survey found that 57% of Gen Z respondents trust advice from insurance companies and people they know, while 61% of Millennials compare options on aggregator websites before making a purchase. Overall, the survey highlights the need for insurance companies to adapt to the evolving needs and preferences of India’s young population, including increasing awareness, offering flexible payment options, and providing personalized services.