Young buyers drop cover

More than half of Indians ages 24 to 34 who let a health insurance policy lapse do it within three years of buying it, according to a Niva Bupa survey reported on April 22. (timesofindia.indiatimes.com) The survey put that figure at 55% for young adults who dropped cover, a sign that many first purchases are not turning into long-term protection. The same report said these buyers often leave the category entirely instead of switching insurers. (timesofindia.indiatimes.com) Cost was the biggest reason cited: 46% of respondents who discontinued a policy said affordability drove the decision. Another 66% of lapsers had active loans, including 33% with personal loans and 17% with home loans. (economictimes.indiatimes.com) Health insurance in India is usually sold as a one-year contract, not a fixed-price policy for life, so renewal premiums tend to rise with age. That makes a policy easier to cut from the household budget than a long-term loan payment or a fixed monthly subscription. (timesofindia.indiatimes.com) The drop-off is happening even as the market keeps growing. Health insurance premiums rose about 9.1% in fiscal year 2025 to roughly ₹1.17 lakh crore to ₹1.2 lakh crore, while the number of lives covered rose only about 1.36% to 1.4% to 58 crore. (timesofindia.indiatimes.com) (economictimes.indiatimes.com) That gap means insurers are collecting more money without adding many newly covered people, a pattern that points to higher prices, higher coverage amounts, or both. India’s insurance regulator said health insurance premiums reached ₹1,27,417 crore in FY25 and made up 41.42% of non-life insurance premiums. (outlookmoney.com) Young buyers also said they did not feel they were getting enough back. A Niva Bupa report cited by Asia Insurance Post said 34% stopped paying because they believed they and their families were healthy, while 31% said they preferred products that show visible returns. (asiainsurancepost.com) That logic can hold until an emergency arrives. The Times of India said lapsing cover leaves younger adults exposed to medical bills from accidents, outdoor injuries, or travel-related emergencies that arrive before savings have had time to build. (timesofindia.indiatimes.com) For insurers, the problem is not just lost customers but a thinner mix of healthy policyholders in their 20s and early 30s. Niva Bupa executive Nimish Agarwal said retaining younger adults is central to spreading risk as claims rise with age. (economictimes.indiatimes.com) The result is a market where more young Indians are trying health insurance, but many are not staying with it long enough for it to work as intended. The first premium gets them in; the third renewal appears to be where many walk away. (timesofindia.indiatimes.com)