India’s health insurance market entered 2026 with a sizeable increase in premiums and higher participation from overseas Indians, trends that insurers and reinsurers across Asia are watching for portfolio and product planning. Health insurance premiums in India grew 27.17% year on year in January 2026 to ₹5,414.54 crore, according to data cited by Angel One. The increase was associated with the recent goods and services tax (GST) change affecting individual retail health policies and higher volumes from government health schemes. General insurers reported health premiums of ₹2,187.98 crore, up 20.4% from a year earlier, while standalone health insurers recorded 32.3% growth to ₹3,226.56 crore. The data indicate that specialist health carriers are accounting for a larger share of the health portfolio.
The GST rationalisation that came into effect in January 2026 reduced the rate on specified individual health policies from 18% to 5%. Market participants say the change lowered the tax component in premiums and supported new purchases and upgrades of individual cover. Government-supported health schemes remained a major contributor. Gross written premium (GWP) from these schemes reached ₹2,480 crore in January 2026, compared with ₹1,800 crore a year earlier, a rise of 37.78%. The increase reflects extended implementation of public health insurance programmes, including Ayushman Bharat, which aim to broaden coverage for lower-income and rural populations.
Retail health premiums increased 27% year on year, while group health plans grew 10%, pointing to faster growth in individual and family business. Private insurers reported a 17% rise in health GWP to ₹1,740 crore. Public-sector insurers, in contrast, posted a 3% decline to ₹89 crore, reflecting differing positions in retail markets and scheme participation. Standalone health insurers’ GWP grew 23% to ₹45 crore, supported by GST exemptions on certain products and a relatively low base. For Asian reinsurers, the mix of retail growth and scheme exposure continues to shape demand for quota share and stop-loss arrangements.
Alongside domestic developments, non-resident Indians (NRIs) stepped up their use of India-issued health policies, creating a cross-border segment that regional carriers are beginning to target. A report from Policybazaar shows that NRI purchases of Indian health insurance rose 126% year on year. The report links the increase to digital distribution capabilities, regulatory and tax changes, and price gaps between Indian and overseas healthcare systems.
Digital tools – including AI-enabled tele-medical assessments, remote documentation, and fully digital policy issuance – are being used by buyers outside India to complete the purchase process. Tax-related adjustments and more standardised compliance procedures have also contributed to segment growth. Price remains a central factor. Indian health plans are often priced below comparable coverage in several foreign markets, with some insurers offering premiums up to 40% lower than equivalent policies overseas, according to the report.
Product choices among NRIs have changed alongside the rise in volumes. Family-floater policies now account for roughly 70% of NRI purchases, up from about 20% a year earlier. Average sums insured exceed ₹25 lakh, and policies bought specifically for parents in India have increased from 32% to 60% of NRI-originated policies. This pattern reflects the needs of ageing parents in India and the role of adult children managing care from abroad. Outpatient department (OPD) benefits are also being selected more frequently. Adoption has risen from 7% to 20%, as NRIs and their families use cover for hospitalisation as well as consultations, diagnostics, and pharmacy costs. OPD benefits are seeing higher use among families managing chronic conditions such as diabetes and hypertension, and for dental, respiratory, and maternity treatments.
The report notes a 70% increase in customers opting for higher coverage limits, influenced in part by medical inflation estimated at about 14% annually. Multi-year plans are up 19%, as policyholders use longer terms to lock in pricing and reduce renewal risk. Siddharth Singhal, business head of health insurance at Policybazaar, said the trend is changing how overseas buyers view Indian health policies. “NRIs are viewing Indian health insurance as a comprehensive healthcare solution covering preventive care, outpatient expenses, and planned treatments, in addition to emergencies,” he said.
Geographic data show that the Gulf Cooperation Council (GCC) remains the largest source of NRI health policy purchases, accounting for about half of the total, led by the United Arab Emirates, Saudi Arabia, and Kuwait. Short travel times to India and higher local healthcare costs are cited as key factors. Europe represents around 25% of NRI demand, with some buyers referring to waiting times for non-urgent procedures in public health systems. The US and Canada together contribute about 17%, where elevated treatment costs are a frequent driver of cross-border cover. Remaining purchases come from markets including Australia and New Zealand, where Indian policies are often used as an additional layer of protection. For Asia-based insurers and reinsurers, these flows point to further development of cross-border health products and service arrangements, including medical tourism-linked offerings and shared provider networks.
Beyond the near-term premium gains and NRI segment expansion, projections indicate continued growth for India’s health insurance market over the coming decade, with potential implications for regional capital allocation. A study by SkyQuest estimates that India’s health insurance market will increase from US$15.99 billion in 2024 to about US$38.2 billion by 2032, corresponding to a compound annual growth rate of 11.5%. The forecast is underpinned by rising treatment costs, shifting consumer expectations, and wider access to insurance through both traditional and digital channels. Group health insurance remains the largest segment, driven by employer-sponsored plans and risk pooling. However, individual policies are gaining share as households seek more specific coverage configurations. Private providers hold a larger market share than public institutions, reflecting a broader range of products and distribution networks.
Hospitalisation cover continues to be the primary product, funding inpatient and surgical care. Critical illness insurance is increasingly used as a complementary product, offering lump-sum payouts that can support both medical expenditure and income replacement. Taken together, the January premium figures, growing NRI participation, and long-range market projections show how tax policy, public health schemes, and digital distribution are influencing health insurance structures and capacity needs in India, with spillover effects for insurers and reinsurers across Asia.
