India's health insurance market is experiencing rapid digital transformation and broader coverage expansion, but continues to face challenges in awareness, standardisation and affordability, according to a report by Aon.
Heightened competition has prompted insurers and brokers to adopt data-driven plan designs, integrate wellbeing services, and implement strategies to control costs. Despite this competitive push, only half of Indian insurers surveyed offer customisation support for clients with over 1,000 employees, compared with 92% of insurers in China.
The insights are drawn from a survey of six Indian insurers, which examined over 600 data points across ten wellbeing domains, including telemedicine, mental health, employee assistance programmes (EAPs), health screenings and case management.
“India’s health insurance sector is at a critical juncture, with rising expectations from both employers and employees,” said Susan Fanning, Head of APAC Wellbeing Solutions at Aon.
“The report underscores the need for insurers to innovate, provide tailored solutions, and develop stronger partnerships to deliver measurable outcomes while managing costs. By aligning more closely with employer priorities, workforce health, cost sustainability and demonstrable results, insurers can help build a resilient, future-ready health benefits ecosystem,” Ms Fanning said.
Telehealth adoption is now widespread, with 83% of surveyed insurers offering services that provide access to general practitioners, chronic disease management, e-prescriptions, and medication delivery.
However, the full potential of telehealth for reducing healthcare costs and driving engagement remains under-utilised, pointing to opportunities for better integration with other wellbeing programmes and enhanced client education.
Employee Assistance Programmes (EAPs) are offered by 67% of Indian insurers through phone, online platforms, and mobile apps, supporting a linguistically diverse workforce in English, Hindi, and other regional languages. Engagement, however, is uneven, with utilisation rates ranging from 1% to 50%, and year-on-year growth between 6% and 40% from 2022 to 2024.
Mental health services are increasingly included, with half of surveyed insurers providing wellbeing assessments, self-help tools, and resilience training.
Health screenings show both potential and gaps in uptake. About 50% of insurers offer services ranging from basic to comprehensive screenings and specialist tests, but employee participation remains low to moderate.
Only a third of insurers have implemented case management and specialist disease management programmes, primarily for chronic conditions such as musculoskeletal and cardiovascular diseases. Onsite clinics are available through two of the six insurers, providing immediate care for common health concerns, though utilisation varies and consistent claims savings have not yet been observed.