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Insights shared by insurers and industry leaders suggest the coming year will be defined less by headline growth and more by how effectively insurers shift from reactive coverage to proactive risk management and experience-led engagement.
Preventive healthcare moves to the centre
Health insurance is expected to see the most visible transformation, as preventive care becomes integral rather than optional.
Care Health Insurance’s 2025 trends point to a sustained rise in insured members and higher sums assured across age groups, reflecting growing awareness of healthcare costs and the need for comprehensive cover.
Manish Dodeja, Chief Operating Officer, Care Health Insurance, said consumers are prioritising preventive healthcare and lifestyle management, influencing both product design and service delivery. Industry platforms echo this shift.
According to Abhishek Poddar, CEO and Co-founder of Plum, employer demand for integrated healthcare and insurance solutions is accelerating, with preventive screenings, OPD benefits and wellness programmes becoming core components of coverage rather than add-ons.
This transition is being driven by economics as much as awareness.
With medical inflation remaining elevated and chronic conditions appearing earlier in life, insurers and employers alike are re-evaluating models that focus solely on hospitalisation.
Industry estimates suggest preventive interventions can significantly reduce long-term claims costs, making early engagement a financial imperative.
Digital experience becomes the primary battleground
Across segments, digital adoption is expected to deepen further in 2026.
Care Health Insurance reports strong growth in online renewals, app-based claims and usage of digital wellness tools, signalling a clear consumer preference for seamless, self-service platforms.
Plum expects claims processing and servicing timelines to compress sharply as automation and AI-led workflows move from pilots to scale.
According to Poddar, experience—rather than pricing—will determine insurer selection, particularly in group health insurance, where employers are now evaluating turnaround times, ease of access and actual utilisation of benefits.
This experience-led competition is also visible in retail insurance.
ACKO noted rising comfort among younger consumers with digital-first insurance journeys, supported by transparent pricing and faster service across health, motor and travel insurance.
Early adoption and broader coverage gain momentum
The outlook for retail health insurance, while still constrained by affordability and awareness, is turning more constructive.
Data from Care Health Insurance shows first-time buyers in the 18–35 age group forming a significant share of policyholders, alongside a steady rise in senior citizen coverage.
ACKO observed a similar behavioural shift, with younger consumers opting for higher sums assured and entering the health insurance category earlier, aided by improved affordability following the GST exemption on health insurance.
Group insurance is expected to continue playing a gateway role.
Plum estimates that a meaningful share of personal health insurance purchases are triggered after a claim experience under an employer policy, suggesting that workplace exposure will remain critical in driving early and informed adoption.
Life insurance focuses on flexibility and long-term planning
In life insurance, the outlook remains positive as insurers adapt to changing demographics and financial priorities.
Sumit Rai, Managing Director and CEO of Edelweiss Life Insurance, said the industry is reorienting itself toward flexible, personalised solutions that go beyond pure protection to address wealth creation and key life milestones.
Technology is expected to play a larger role in distribution and engagement, with AI enabling more tailored offerings and sharper insights across customer interactions. As digital research blends with advisor-led sales, insurers are likely to move from channel-centric strategies to more integrated access models.
Motor and travel reflect mobility and confidence
Motor and travel insurance trends are also expected to mirror broader consumption and mobility patterns. ACKO anticipates continued growth in motor insurance, driven by new vehicle purchases and rising electric vehicle adoption, while travel insurance is likely to benefit from increasing international travel and greater awareness of medical and disruption-related risks.
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