The average premium per health insurance policy has increased by 73% in smaller cities since 2020, according to insurtech platform Turtlemint report. As medical inflation remains at 14% annually, more individuals are choosing comprehensive plans to manage rising healthcare costs, the report said.

According to GlobalData, India’s health insurance market is expected to reach ₹2.00 lakh crore ($23.8 billion) by 2028.

Turtlemint reports a 240% increase in total sum assured over five years, indicating higher demand across metro and non-metro regions.

The company services ₹5.46 lakh crore in annual quote requests, covering 592 Tier II and beyond cities.
The trend suggests a growing awareness of financial protection against medical emergencies. More people are opting for higher sum assured policies, reflecting a preference for broader coverage and better healthcare access.

Insurtech platforms are playing a key role in this shift by simplifying policy selection and streamlining claims management.

Digital tools and AI-driven recommendations are helping consumers compare policies and make informed decisions.

In a separate development, insurers are considering making Delhi residents pay 10% to 15% more for new health policies after an extraordinary spike in claims related to air pollution in 2024 in India’s capital, according to a Reuters report.

The plan, now in discussion amongst insurers and which would need approval from the insurance regulator, follows record-breaking air pollution in Delhi last year.

If approved, it would be the first time air pollution was used as a direct factor in figuring health insurance premiums in India, and could be used to justify price hikes in other cities as well.