How health insurance industry can offer relevant products for Gen Z and Gen Y

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health insurers to bridge gap in coverage and expand their market reach. Moreover, with a working population ratio of nearly 56% as per the latest Annual Periodic Labour survey report, and comprising largely of Gen Y and Gen Z, there is a pressing need for health insurance solutions that are affordable, easily accessible and relevant for young customers. One of the key issues in the current market is the lack of visibility regarding the value proposition of health insurance, leaving many unsure of its immediate necessity.

Additionally, the cost of quality healthcare system in India has risen manifold, making affordability one of the most prominent hurdles for customers when it comes to health insurance premiums. Traditional, retail health insurance policies often come with hefty premiums, posing a challenge for many young professionals. These individuals are seeking health insurance solutions tailored to their financial capabilities and specific needs.

They require policies that offer value beyond basic hospitalization coverage, including benefits such as out patient department or OPD consultation services, chronic illness management, and even wellness packages. India’s health insurance market is evolving, with key trends emerging to meet the diverse needs of young professionals. Notably, there are distinct trend in tier 3 and tier 4 cities as compared to metropolitan areas, in tier 3 and tier 4 cities, where healthcare costs are relatively low, with most customers opting for basic coverage that meets their immediate healthcare needs.