A new survey by HDFC ERGO General Insurance reveals a significant shift in the attitudes of Gen Z and Millennials in India towards health insurance, with 61% of respondents in this demographic preferring to invest in it.
The study, titled ‘Exploring Gen Z and Millennials mindset towards insurance’, was commissioned by HDFC ERGO and conducted by NielsenIQ (NIQ), a global leader in consumer intelligence, according to FF News.
The survey polled 2,200 individuals across 17 Tier 1 and Tier 2 cities in India, focusing on 1,400 Gen Z and Millennial respondents.
Commenting on the findings, Anuj Tyagi, Managing Director and Chief Executive Officer of HDFC ERGO General Insurance, said, “The Gen Z and Millennial contribute to more than 50% of India’s population, as compared to the world average of 47%, thus making it a vital force in shaping the country’s economy. This sect of population is in fact reshaping the insurance industry and pushing the insurers like us to rethink the way we offer customer experience. Their key expectations include transparency in processes, digital ecosystem with quick TATs, and hyper-personalised services. At HDFC ERGO, we believe in building meaningful interventions for our customers to make insurance a a part of their everyday lives. This survey reinforces our mission to empower the next generation with insurance that’s relevant, accessible, and responsive to their evolving needs.”
The survey underscores how rising medical inflation and changing lifestyles are motivating young Indians to take a more proactive approach to financial planning. Of the 1,400 Gen Z and Millennial respondents:
-
37% cited rising healthcare costs and protection against unexpected medical expenses as key motivators.
-
36% viewed added benefits such as routine health check-ups as important incentives.
-
48% prioritised quick and responsive customer service.
-
47% sought access to educational tools and resources to better understand their insurance options.
Despite growing interest, lack of awareness remains a major hurdle. Among 167 Gen Z respondents, 44% admitted they had not invested in health insurance due to a lack of understanding. Among 393 Millennials, 43% felt their employer-provided health insurance was sufficient, negating the perceived need for personal cover.
Urban centres such as Kolkata (51%), Bengaluru (49%), Mumbai (49%) and Chennai (47%) exhibited strong demand for the inclusion of pre-hospitalisation expenses in standard policies. Rising medical costs continue to be a trigger for insurance uptake, particularly in Chennai (49%), Kolkata (47%), Bengaluru (47%) and Mumbai (42%).
In Hyderabad and Mumbai, 30% and 29% of respondents respectively expressed a desire for more flexible premium payment options to improve affordability.
Interestingly, while Gen Z are known for their digital fluency, the survey revealed that 67% of 840 respondents in this group still prefer assistance when buying health insurance, resulting in a continued reliance on offline channels.
In fact, 60% of all policyholders surveyed had purchased policies offline, largely due to trust in insurance agents—highlighting the ongoing importance of a strong agent network.
Among the 1,400 surveyed, 27% highlighted the hospital network as a key consideration when selecting a policy, while 24% prioritised simplicity in policy terms.
When it comes to decision-making influences:
-
57% of Gen Z respondents cited insurance companies and word of mouth as their primary sources of information.
-
61% of Millennials preferred comparing policies via aggregator websites.
Copyright © 2025 FinTech Global
