In a country where medical inflation is skyrocketing and healthcare costs are outpacing income growth, Indian consumers are rethinking how they approach health insurance. According to the recently released Health Insurance Customer Experience Score (CuES) 2025 report by Hansa Research, customer experience now ranks above pricing and brand awareness as the primary deciding factor when choosing a policy.

This marks a significant shift in the health insurance landscape, influenced by digital convenience, rising healthcare expenses, and the desire for flexible, wellness-oriented insurance plans.

Protection from Rising Medical Costs Remains the Top Motivator

One of the most striking findings of the CuES 2025 report is that nearly 48% of respondents cited protection from escalating medical expenses as their main reason for buying health insurance.

This statistic clearly reflects a growing awareness among Indian consumers about the importance of financial safety nets amidst ever-increasing hospitalisation costs, outpatient treatment fees, and the cost of medicines.

In addition, the report reveals that 30% of policyholders are now purchasing top-up or additional health coverage over and above what their employers provide. This behaviour highlights a shift toward more comprehensive, personalised protection, rather than reliance on limited group insurance.

Ease of Claims, Digital Tools, and Hospital Network Drive Satisfaction

The CuES 2025 study collected feedback from over 3,800 customers across 12 major insurers and found that three primary factors dominate customer loyalty and satisfaction:

1. Claims process ease

2. Service transparency

3. Digital service accessibility and usability

With the Net Promoter Score (NPS) for the industry averaging 55%, top-performing insurers are those offering seamless digital onboarding, claim tracking portals, robust mobile apps, and wider hospital networks.

“Customers today expect seamless and transparent service across the policy journey,” said Praveen Nijhara, CEO of Hansa Research. This statement reinforces the growing influence of end-to-end customer experience in driving purchase and retention behaviour.

Claims Remain a Major Pain Point

While insurers have made significant strides in technology adoption and service, claims-related grievances persist. The report reveals that 55% of customers who filed a claim encountered difficulties.

Common issues include:

• Delayed payouts

• Pre-authorisation slowdowns

• Limited tie-ups with hospitals

• Lack of real-time status updates

These concerns are more acute among millennials, who place a premium on speed, transparency, and digital responsiveness. This demographic now constitutes a large share of the health insurance market and is pushing insurers toward more agile and tech-driven service models.

Millennial Preferences Are Redefining Product Expectations

Millennials and younger generations are not content with just basic coverage. The report highlights their preference for wellness-linked and customisable plans, features such as:

• Telemedicine and e-consultation

• Fitness and wellness incentives

• 24x7 chatbot and support services

• Paperless claim filing

This shift has made it essential for insurers to move from being just financial protectors to wellness partners, offering ongoing value throughout the policy lifecycle.

Digital Convenience Is Non-Negotiable

Today’s insurance buyer demands convenience across all touchpoints. Whether it’s comparing policies, buying a plan, or filing a claim—a user-friendly digital journey is critical.

The CuES 2025 report notes that insurers with strong digital platforms and mobile applications score higher on customer satisfaction. Features like instant premium calculators, AI-driven claim updates, and virtual assistance are no longer optional—they are expectations.

Portability Adds Competitive Pressure

Another emerging trend highlighted in the report is increased policyholder portability. With regulatory changes simplifying the switching process, customers are more empowered than ever to walk away from poor service or sudden premium hikes.

This has raised the stakes for insurers, who must now focus on holistic customer experience rather than just policy acquisition. Retention strategies must address every touchpoint, from onboarding to renewal.

Barriers Still Exist for First-Time Buyers

While existing policyholders are becoming more demanding, non-policyholders still face significant barriers to entry:

• Perceived high costs

• Complex policy terms

• Lack of awareness about benefits

To increase adoption, the report recommends simplified communication, micro-insurance products, and streamlined onboarding processes. Insurers need to demystify insurance for the average consumer.

Steps to Build Trust and Improve Adoption

According to Piyali Chatterjee, Executive VP – CX at Hansa Research, improving customer trust requires a multi-pronged approach:

• Faster claims turnaround

• Transparent protocols

• Expanded hospital networks

• Proactive communication

These steps not only improve satisfaction among current policyholders but also help convert hesitant consumers into first-time buyers.

Final Thoughts: The New Health Insurance Playbook

The CuES 2025 report underlines a decisive shift in consumer behaviour. Pricing and branding are no longer sufficient. Today’s health insurance buyer wants:

• Digital-first convenience

• Personalised, flexible coverage

• Fast and transparent service

• Support that extends beyond illness

Insurers that understand and act on these preferences will stand out in a crowded market and build stronger, longer-lasting customer relationships.

As India continues to digitally transform its healthcare and insurance sectors, customer experience will emerge as the most critical battleground for insurers. The winners will be those who can truly walk the talk on transparency, speed, and user empowerment.

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