Health insurance premiums rise as demand for coverage expands, regulator tightens timelines

India’s health insurance sector continues to register steady growth, with premium collections rising by around 9 per cent over the past year, reflecting a sustained increase in demand for financial protection against medical expenses.

Industry data indicates that total health insurance premiums have crossed ₹1.2 lakh crore, driven by higher healthcare costs, greater awareness and a broader shift towards risk coverage among urban and semi urban households. Insurers have also expanded product offerings, including customised plans and add on covers.

Alongside this growth, the Insurance Regulatory and Development Authority of India has moved to tighten timelines for claim settlement, seeking to address long standing concerns over delays and disputes. The revised norms are expected to improve accountability and enhance policyholder confidence.

Stakeholders say the sector is at an inflection point, with penetration still relatively low compared to global benchmarks but rising steadily. At the same time, questions remain around affordability and the need for simpler products, particularly for first time buyers.

The regulatory push, coupled with expanding demand, suggests that health insurance will remain a key pillar in India’s evolving healthcare landscape, even as the system grapples with issues of access and cost.