The India health insurance market was valued at USD 16.04 Billion in 2025, driven by the rising public awareness of the financial advantage of having health insurance. The market is anticipated to grow at a CAGR of 11.70% during the forecast period of 2026-2035, with the values likely to reach USD 48.50 Billion by 2035.
Base Year
Historical Period
Forecast Period
State-specific and wellness-linked plans are set to redefine personalization in India’s health insurance offerings.
The market growth is driven by an expanded hospital networks and unlimited coverage products will significantly boost consumer trust and policyholder retention.
Short-term benefits and micro-insurance models will drive insurance adoption in rural and underinsured regions.
Compound Annual Growth Rate
11.7%
Value in USD Billion
2026-2035
*this image is indicative*
The Indian market is witnessing major public expansion. For instance, in September 2024, the government extended free medical insurance coverage of INR 500,000 (approximately USD 6,000) per family to all citizens aged 70 and above. This move fulfils a key poll promise by Prime Minister Narendra Modi and is expected to benefit an additional 60 million people. It builds on the 2018 healthcare initiative that already covers more than half a billion citizens, signalling an intensifying government push toward broader health protection. The market is anticipated to grow at a CAGR of 11.70% during the forecast period of 2026-2035.
Hospital Network Expansion Boosting Health Insurance Accessibility in India
The market is witnessing increased accessibility due to expanding insurer-provider partnerships and digital onboarding. For instance, in June 2024, Tata AIG launched new retail health insurance plans and announced plans to onboard 3,500 hospitals by FY27, significantly enhancing its provider network. This strategic expansion boosts penetration in tier-2 and tier-3 regions, enabling cashless care and improving trust in private plans. As provider coverage widens, insurers are positioned to capture more previously underserved and uninsured customer segments.
The major market trends include the adoption of customized plans for consumers’ convenience, a shift towards wellness focused plans, and variations brought on according to regional variations.
Customized Daily Benefit Plans Reinvent Short-Term Health Coverage Value
Customized, short-term payout plans are reshaping value perception in India’s health insurance segment. For instance, in January 2025, SBI General Insurance and Starfin India launched a Hospital Daily Cash Benefit Plan, offering insured individuals’ daily payouts during hospitalization. This product targets low-income and rural customers seeking manageable coverage without paying large premiums. By focusing on affordability and relevance, such innovations boost micro-insurance uptake and improve claim satisfaction, reinforcing product-market alignment for targeted population cohorts.
Wellness-Focused Plans to Drive India Health Insurance Market Demand
Wellness-integrated insurance plans are rising in popularity due to growing health-conscious behavior. For instance, in June 2025, Galaxy Health Insurance launched a new policy featuring wellness-linked benefits in collaboration with Policybazaar. The plan incentivizes preventive care and regular health checkups by offering rewards for healthy behaviors. This trend reflects a shift from reactive to proactive health management in Indian insurance design, aligning policy utility with consumer lifestyle, and enhancing both retention and perceived value.
Regionally Tailored Health Plans to Expand India Health Insurance Market Size
Insurers are localizing policy frameworks to match regional health demands. For instance , in June 2025, Bajaj Allianz launched India’s first state-wise health insurance policy, offering coverage customized to each Indian state’s medical cost benchmarks and disease patterns. This strategic move acknowledges varying access gaps and treatment costs across states. As insurers fine-tune their offerings, policy relevance and affordability are enhanced, driving higher regional adoption and improving claim efficiency in local health ecosystems.
Rising Healthcare Costs Fuel High-Limit Policy Innovation in India Health Insurance Market
Rising medical inflation and underinsurance are prompting insurers to provide broader financial protection. For instance , in May 2024, Future Generali India launched “Health Unlimited,” a product designed to tackle treatment-cost inflation and insufficient coverage by offering high-limit or unlimited coverage options. These offerings reflect consumer demand for reliable protection against critical illness and hospitalization burdens. By focusing on coverage adequacy, insurers are not only enhancing trust but also securing long-term policyholder retention.
Private Sector to Lead the Market Segmentation by Provider
The private provider segment is expected to hold the largest share, supported by faster claim settlements, tailored policy options, and digital onboarding. The segment commanded a market share of nearly 66% in the historical period, by gross direct premium income. Unlike public schemes that often face delays and limited customization, private players have leveraged mobile platforms, telemedicine tie-ups, and wellness-linked policies to boost customer acquisition. This agility positions private providers for continued dominance across urban and semi-urban markets.
The southern region is likely to hold the largest share due to its high insurance awareness and strong healthcare infrastructure, particularly in states like Tamil Nadu and Kerala, which have near-universal health coverage through schemes like CMCHIS and Karunya. The western region, led by Maharashtra and Gujarat, follows closely, driven by dense urbanization, higher disposable incomes, and robust private insurer penetration. Both regions outperform others not just in enrolment rates, but in claim utilization and digital adoption, making them critical hubs for future health insurance growth.
The key features of the market report comprise strategic initiatives by the leading players. The major companies in the market are as follows:
Headquartered in Mumbai and established in 2000, HDFC Life has expanded its market relevance through digital innovation and wellness-linked insurance offerings. In December 2023, it launched the “Click 2 Achieve” plan, integrating savings with health benefits. The company also opened a branch at GIFT City to serve NRIs and global policyholders, aligning with regulatory moves toward international insurance hubs. These strategic actions are enhancing both domestic penetration and cross-border health coverage capacity.
Founded in 2006 and based in New Delhi, Bharti AXA underwent a major structural shift in October 2023 when Bharti Group announced the acquisition of AXA’s 49% stake in the joint venture. This move is designed to streamline operations and allow Bharti to inject new capital, enabling customized health insurance products tailored for India’s digitally-savvy and underserved populations. It also positions the firm to respond more swiftly to regulatory and consumer-driven changes in the healthcare ecosystem.
Established in 2000 and headquartered in Mumbai, SBI Life strengthened its presence in the health insurance space in 2023 by integrating Sahara Life’s policyholders under IRDAI’s direction. In December 2024, it reported a New Business Premium of INR 26,256 crore, reflecting accelerated adoption. It also partnered with AWS in 2023 to implement a generative AI document assistant, cutting agent onboarding and training time by 30%. These advancements underline SBI Life’s operational scalability and digital transformation focus.
Headquartered in Mumbai and founded in 2000, ICICI Prudential has focused heavily on women-specific health coverage. For instance, in December 2024, it partnered with Reinsurance Group of America (RGA) India to launch “ICICI Pru Wish”, a first-of-its-kind women’s insurance plan that covers specific health risks. The company also introduced “Gift Select”, a guaranteed income plan supporting long-term healthcare financial planning. Together with its digital tools under the “ICICI Stack,” these innovations position the firm at the intersection of health, wellness, and tech-forward insurance.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other players in the market include Max Life Insurance Company, Bajaj Allianz Life Insurance Co. Ltd., Tata AIA Life Insurance Company Limited, Kotak Mahindra Group, Aditya Birla Capital Ltd, and Life Insurance Corporation of India.
"India Health Insurance Market Report and Forecast 2026-2035" offers a detailed analysis of the market based on the following segments:
Market Breakup by Type
Market Breakup by Provider
Market Breakup by Coverage
Market Breakup by Demographics
Market Breakup by Mode
Market Breakup by End User
Market Breakup by Distribution Channel
Market Breakup by Region
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*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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In 2025, the market reached an approximate value of USD 16.04 Billion.
The market is projected to grow at a CAGR of 11.70% between 2026 and 2035.
The market is estimated to witness healthy growth in the forecast period of 2026-2035 to reach a value of around USD 48.50 Billion by 2035.
The different regions considered in the market report include East India, West and Central India, North India, and South India.
The different types of health insurance include disease health insurance and medical health insurance.
The different end users of insurance in the market include individuals, and corporates, among others.
The different types of health insurance coverage include disease insurance and medical insurance, among others.
Key players in the market are Life Insurance Corporation of India, HDFC Life Insurance Company Ltd., SBI Life Insurance Company Ltd., ICICI Prudential Life Insurance Company Ltd., Max Life Insurance Company, Bajaj Allianz Life Insurance Co. Ltd., Tata AIA Life Insurance Company Limited, Kotak Mahindra Group, Aditya Birla Capital Ltd., and The New India Assurance Co. Ltd., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
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| Breakup by Type |
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| Breakup by Provider |
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| Breakup by Coverage |
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| Breakup by Demographics |
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| Breakup by Mode |
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| Breakup by End User |
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| Breakup by Distribution Channel |
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| Breakup by Region |
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| Market Dynamics |
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| Supplier Landscape |
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| Companies Covered |
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