A majority (61%) of Indian millennials and GenZ see health insurance as an important part of their financial planning according to a new survey by an Indian general insurer.
This preference is driven by rising medical costs and demand for wellness benefits. The recent survey by HDFC ERGO General Insurance and NielsenIQ found that as healthcare costs surge across the country, a growing number of young Indians are making health insurance a priority.
The study, conducted among 2,200 respondents in 17 tier-II and tier-III cities, reveals that the escalating medical expenses are prompting younger generations to secure coverage. Nearly 37% of participants cited rising treatment costs as the main reason for purchasing health insurance, while 36% were attracted by wellness benefits such as health check-ups.
HDFC Ergo General Insurance MD and CEO Anuj Tyagi said, “Millennials and GenZ account for over half of India’s population. Their evolving expectations are reshaping the insurance industry. They value transparency, quick turnaround times, and hyper-personalised services.”
Despite this growing interest, gaps persist. The survey revealed that 44%per cent of Gen Z respondents are hesitant due to lack of awareness, while 43%of millennials rely on their employer’s group health insurance and feel no need for a separate plan.
Interestingly, even as India’s youth embrace technology, a significant majority still prefer offline channels for buying policies. About 60% of millennials and Gen Z purchase health insurance through agents, citing trust and the need for guidance during claims as key reasons.
When evaluating policies, 27% prioritise a wide hospital network and 24% value simple policy terms. Family and friends play a key role in influencing GenZ’s decisions, while millennials often use aggregator websites to compare options.