Summary of this article
61 per cent of young Indians now value personal health insurance coverage.
High treatment costs drive 37 per cent of Gen Z and millennials to buy policies.
60 per cent still prefer offline policy purchases, trusting human agents over digital tools.
Key demands include better customer service, clearer terms, and flexible premiums.
Health insurance has long been an afterthought for many young Indians, but that seems to be changing. According to a recent study by HDFC ERGO and NielsenIQ, a solid 61 per cent of millennials and Gen Z say they now see value in investing in personal health coverage. The survey, which included people from 17 cities across India, mentions how this generation is beginning to take control of its financial and physical well-being.
Rising Medical Costs Are A Reality Check
Medical care isn't cheap anymore. And today's youth are clearly paying attention. About 37 per cent of those surveyed pointed to high treatment costs as the main reason for buying health insurance. Another 36 per cent said they were drawn in by the added perks, things like regular check-ups and wellness benefits. These are no longer "nice-to-haves"; they're part of the deal now, and that matters to younger buyers.
The Old-School Approach Still Works
It's easy to assume this generation does everything online. And while that might be true for shopping and food delivery, when it comes to buying insurance, many still prefer the human touch. Around 60 per cent of respondents said they purchased their policies offline, mainly because they trust agents more, especially when something goes wrong and a claim needs to be made.
Knowledge Gaps And Assumptions
Despite growing interest, there's still a lot of confusion. Among Gen Z respondents, 44 per cent said they haven't bought personal health insurance simply because they don't know enough about it. That's a significant chunk. Millennials, on the other hand, often assume that their company-provided health plan is enough. In fact, 43 per cent of them admitted this was the reason they hadn't bought individual coverage.
Who Do They Listen To?
Family and friends continue to be key voices in health decisions. More than half of Gen Z respondents, 55 per cent, say they rely on family for advice. Millennials seem to be more independent. A majority of them, 61 per cent—prefer to check aggregator websites and compare options themselves before making a decision.
What Buyers Are Really Looking For
It's not just about premiums anymore. People now care deeply about the quality of service. Nearly half of those surveyed—48 per cent—said responsive customer support was one of the things they expected from insurers. Another 47 per cent wanted clearer information to help them understand policies better. For others, a hospital network and simple, easy-to-read terms were also top priorities.
How Cities Are Thinking Differently
Dig a little deeper, and regional patterns start to emerge. Cities like Chennai, Kolkata, and Bengaluru show strong interest in coverage for pre-hospitalisation expenses. In Chennai alone, 49 per cent of respondents said this was something they looked for in a plan. And affordability is front and centre too. In Hyderabad, for instance, 30 per cent of respondents said they'd prefer policies with flexible premium payments. Mumbai wasn't far behind, with 29 per cent asking for the same.
According to the report, health insurance is no longer a box to tick after a certain age. It's becoming a key part of how young people think about their future. Millennials and Gen Z are clearly more engaged now than they were even a few years ago. But there's still work to do: more education, simpler plans, and better support are all essential if the industry wants to meet them where they are.
In short, they're not just buying a product—they're buying peace of mind. And they want to be sure they're doing it right.
