Clipped from: https://www.thehindubusinessline.com/specials/current-account/a-safety-net-in-sickness-and-in-health/article70635394.ece
How preventive and proactive care is central to building a sustainable health insurance model
QUICK ASSIST. Technology enables innovative products such as instant and affordable accident covers | Photo Credit: bymuratdeniz
In India, health insurance is largely viewed through a narrow lens, as something to be considered only when a hospital visit feels imminent — a safety net reserved for difficult moments. But the country’s evolving health needs demand a broader, more forward-looking approach. Today, the interface with healthcare itself is shifting, from the manner of accessing information to managing everyday wellbeing. This shift, in turn, is reshaping expectations from insurance.
As digital adoption accelerates, awareness of preventive care grows and consumers engage more actively with their health, insurance is undergoing a steady redefinition. It is evolving from a crisis-driven safety net into a partner that supports everyday health choices. In this new arc, usability will shape the future of health insurance. The industry’s growth has been impressive, driven by rising health awareness and digital innovation.
Yet, the true promise of health insurance lies ahead. The future will belong to insurers who make their products simpler and seamlessly usable.
From claims to care
India’s health challenges are increasingly being shaped by chronic and lifestyle-related conditions that require continuous management. Non-communicable diseases, such as diabetes, hypertension and heart disease, are responsible for nearly two-thirds of all deaths in the country.
The World Health Organisation’s 2030 Agenda for Sustainable Development, to which India is a signatory, recognises NCDs as a major challenge to global progress. It calls for reducing premature mortality from NCDs by one-third, through prevention and treatment, by 2030. This underscores the need for India’s healthcare ecosystem, including insurers, to move from reactive care to proactive health management.
A preventive approach is now central to building a healthier population and a sustainable insurance model, with insurers promoting regular check-ups, wellness assessments and fitness-linked incentives. When preventive care becomes integral to insurance, staying healthy is not just encouraged but also rewarded.
Everyday healthcare
Healthcare costs in India are rising sharply — projected to consistently run at 12-15 per cent annually, higher than the general inflation rate of 4-6 per cent. While hospitalisation costs draw the most attention, a significant share of healthcare spending happens outside hospitals. Doctor consultations, diagnostic tests, teleconsultations and medicines account for much of what families pay from their pocket. These smaller, frequent costs often create more financial strain than a rare hospitalisation. Health insurance is beginning to reflect this shift.
Comprehensive coverage should extend to outpatient (OPD) care, making doctor visits and diagnostics more affordable. The pandemic accelerated the use of telemedicine, and millions of Indians now consult doctors online, highlighting the demand for accessible healthcare beyond physical clinics. Incorporating such services into mainstream plans will make healthcare more inclusive and convenient. Pharmacy benefits are equally important. Medicines often form the largest component of household health spending. Insurers can ease this burden by covering prescribed drugs, offering cashless pharmacy services or partnering with digital pharmacies for discounts and doorstep delivery.
Micro-products
A major challenge in India’s insurance landscape is the missing middle segment: Millions of individuals and families who do not qualify for government schemes but find private insurance expensive or complex. This segment remains vulnerable to financial shocks from even moderate medical expenses. To bridge this gap, there’s an opportunity for insurers to design flexible, event-based micro-products, such as seasonal dengue covers, maternity and childcare packages, or short-term wellness or accident covers. Such modular products can be purchased instantly, used easily and priced affordably. Technology is making this innovation possible.
Digital platforms now enable people to buy, manage and claim insurance on their phones, with minimal paperwork. Regulatory initiatives like IRDAI’s Insurance Vision 2047 encourage simplified, digital-first products that expand participation and spur innovation. Integration with national health missions and payment systems will further streamline access.
As insurance becomes more flexible and transparent, it will attract new demographics, including young professionals and gig-economy workers who prefer customised, on-demand coverage.
A major driver of modern usability is personalisation. Tools, such as data analytics, artificial intelligence and wearable technology, are enabling insurers to tailor products and health programmes to suit individual behaviours and risk patterns. As this evolution unfolds, usability and user experience are becoming inseparable. Global research shows that insurers who invest in strong user experience design — clear interfaces, simplified journeys and responsive digital touchpoints — see higher satisfaction and deeper engagement among policyholders.
When technology feels intuitive and human, it encourages people to interact with their insurance more often and with greater confidence. Customers can now earn rewards, including a percentage of discount on their premiums, for daily step goals and receive nudges for preventive screenings or access tailored nutrition and fitness guidance. Over time, this could potentially evolve into hyper-personalised insurance that learns from individual habits and dynamically adjusts benefits.
India’s push toward zero GST on individual health insurance marks a decisive shift: access must no longer be constrained by cost. The next chapter of health insurance in India will be defined by usability and affordability working hand-in-hand, moving closer to making “insurance for all” a lived reality.
Mayank Bathwal, CEO, Aditya Birla Health Insurance
(The writer is CEO, Aditya Birla Health Insurance)
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Published on February 16, 2026
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