The health insurance landscape in India is undergoing a significant transformation, shifting from a traditional safety net for emergencies to a wellness partner that encourages policyholders to adopt healthier lifestyles. Insurers are now incorporating wellness-linked benefits into mainstream health plans, using digital tools such as walk-tracking apps, nutrition coaches, and teleconsultations to promote preventive care and reduce long-term healthcare costs. These initiatives are changing the way people engage with insurance and how insurance companies view risk.
Insurers are using behavior-based incentives, such as rewards for exercising, completing check-ups, or maintaining a healthy lifestyle, to encourage policyholders to prioritize their health. These rewards can be redeemed for premium discounts, savings on diagnostic tests, or other benefits. For example, Aditya Birla Health Insurance’s HealthReturns program allows customers to earn rewards for walking 10,000 steps or burning calories, which can be used to pay for outpatient bills or pharmacy expenses.
The use of technology, such as wearables and health apps, is also poised to revolutionize the underwriting process, allowing insurers to assess risk more accurately and offer personalized premiums. Insurers are using real-time health data to design more responsive offerings and provide everyday support to policyholders, including mental health support, fitness guidance, and pet care.
Industry leaders believe that awareness about the benefits of health insurance is still low, particularly among younger or healthier individuals. To bridge this gap, insurers are using gamified tools, AI-driven reminders, and personalized nudges to make wellness engaging and accessible. They are also committed to providing convenient, digital-first experiences that put customers first.
The shift towards wellness-based insurance is expected to have a positive impact on the healthcare system, encouraging people to prioritize preventive care and reducing the burden of lifestyle-related diseases. As Parthanil Ghosh, Executive Director of HDFC ERGO General Insurance, noted, “Insurance is no longer an afterthought — it’s becoming an active partner in daily life.” With the integration of health tech, insurers will be able to assess and reward wellness behavior more effectively, enabling inclusive coverage across India.