New data from Acko Insurance reveals a concerning gap in India's health insurance purchase behaviour among the Gen z population.
Indian Gen Zs, despite being a digitally native and wellness-driven generation, remain significantly under-insured, with only 2% of health insurance policy buyers falling in the 20–25 age group.
The data also underlines that in contrast to the low purchase of insurance policies in the age bracket of 20s, nearly 40% of Acko’s policy buyers are between 30–45 years, typically entering mid-career phases or starting families — stages that often act as insurance triggers. This data reflects a persistent perception that health insurance is a future expense, not a present necessity.
The data further reveals that only 2% of policy buyers are aged 20–25, and this figure has remained flat across five quarters. The largest share (40%) of policy buyers falls between 30 - 45 years, indicating insurance is only considered after major life events. Around 17% of policy buyers are aged 65+, suggesting families are opting for coverage later in life, often when premiums are higher and benefits are reduced. Just 12% of policies include elderly parents, revealing low intergenerational insurance planning — a concern in a country with rising dependency ratios. Urban centres lead in adoption: Bengaluru (21%), Delhi-NCR (13%), Hyderabad (9%), Mumbai (8%), and Pune (6%) collectively account for over half of Acko’s customer base
Acko Insurance managing director & CEO Animesh Das said that over the past year, the uptake among 20–25-year-olds has remained stagnant at just ~2%, highlighting a persistent lack of urgency despite rising health conversations in the digital ecosystem. “The issue isn’t just awareness, but of a deeper gap in relevance, access, and timing and individuals need to understand that health insurance isn’t just a financial product, it’s a wellness tool,” he said
Acko’s health insurance insights are based on an internal analysis of health insurance policy buyers across India, tracked between April 2024 and April 2025.