Growing Demand for low-cost health insurance among Gen Z and women: RenewBuy Report, ET HealthWorld

New Delhi: In the two years since the launch of RB Health, there has been a notable rise in the adoption of low-cost health insurance plans, particularly among Gen Z and women.

The demand for such plans has grown by 24 per cent among Gen Z, driven by increasing awareness of financial security, preventive healthcare, and rising medical expenses. Younger consumers are favoring flexible policies and digital engagement, aligning with broader industry trends where 50 per cent to 60 per cent of Gen Z consumers seek better online insurance services.

Women now account for 30 per cent of policyholders, reflecting a growing emphasis on financial independence and health awareness. The demand for low-cost health insurance among women has risen by 10 per cent to 12 per cent annually, with the highest adoption seen in the 31–40 age group. Many women, especially younger ones, are opting for policies with OPD benefits, demonstrating a proactive approach to healthcare.

The adoption of low-cost health insurance has also been significant in states such as Uttar Pradesh, Gujarat, and Maharashtra, which together account for 47% of the total consumer base for this product. Affordability and accessibility have been key factors driving its uptake.

Among senior citizens, around 10% have opted for these plans, which offer premiums up to 70% lower than traditional policies, addressing chronic disease management and coverage gaps.

Indraneel Chatterjee, Co-Founder of RenewBuy, said “Today’s consumers, especially in smaller markets, seek OPD benefits, coverage for lab tests and medications, and customized premium rates. The purchasing power in these regions differs significantly from metro cities, making affordability a key factor. Over the past two years, we have tapped around 1.5 per cent of RenewBuy’s overall consumer base with our low-cost health insurance, and interestingly, women and the younger generation have shown a growing inclination, especially in smaller markets.”

The insurance sector is undergoing rapid transformation, driven by evolving consumer needs, lifestyle changes, and increasing digital adoption. With medical inflation in India rising by 13 per cent to 14 per cent annually, the digital distribution of low-cost health insurance is expected to improve accessibility and bridge coverage gaps.

• Published On Mar 1, 2025 at 07:36 AM IST

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