Health insurance renewal rates have reached an all-time high in fiscal year 2026. According to Policybazaar report, customers are increasingly opting for new age modular and affordable health insurance plans. This parameter has seen a strong growth of 4 percent in the last five years, indicating the strength of the health insurance sector.
Due to the increasing incidence of lifestyle diseases like diabetes, high blood pressure, cholesterol and heart diseases, customers are becoming conscious about health insurance. The number of such customers among new insured on Policybazaar has increased by 25 percent. Attractive features of the new plans such as cumulative bonus (which extends the cover irrespective of claims) and unlimited cover options are motivating customers to stick with the same plan for a longer period.
Companies are succeeding in attracting customers from old plans to new high-cover and feature-rich plans. Floater plans meant for families are seeing higher renewal rates than individual policies, while the higher the cover limit, the higher are the chances of renewal.
Additionally, riders have also increased in popularity, including Cumulative Bonus, Critical Illness Benefit, Daily Cash Allowance, Coverage for Consumables, and Preferred Network Rider. Customers are now viewing their plans as a long-term financial strategy and not just a transaction.
According to Jitin Jain, Head, Policybazaar, “The improvement in renewals reflects that Indian consumers now consider health insurance as an investment and a means of protection rather than an essential safety net. Durable products, customization and better affordability options are driving them to join year after year.”
This growing trend will not only strengthen customer protection but also bodes well for the stability and growth of the health insurance industry.