“Over the past year, the uptake among 20–25-year-olds has remained stagnant at just ~2%, highlighting a persistent lack of urgency despite rising health conversations in the digital ecosystem. The issue isn’t just awareness; it’s a deeper gap in relevance, access, and timing. Individuals need to understand that health insurance isn’t just a financial product, it’s a wellness tool. And like all good habits, the earlier you start, the better the outcome,”Animesh Das, MD & CEO, ACKO General Insurance.
Bengaluru: In a new report released on the occasion of National Insurance Awareness Day, ACKO highlighted a concerning gap in India’s health insurance purchase behavior, .
With its compelling data, ACKO underscores the disparity in the age gap and reveals that despite being a digitally native and wellness-driven generation, Gen Z remains significantly under-insured, with only 2% of health insurance policy buyers falling in the 20–25 age group.
The data also underlines that in contrast to the low purchase of insurance policies in the age bracket of 20s, nearly 40% of ACKO’s policy buyers are between 30–45 years, typically entering mid-career phases or starting families — stages that often act as insurance triggers. This data reflects a persistent perception that health insurance is a future expense, not a present necessity.
Key Insights from ACKO’s Health Insurance Data
-Only 2% of policy buyers are aged 20–25, and this figure has remained flat across five quarters,
-The largest share (40%) of policy buyers falls between 30 – 45 years, indicating insurance is only considered after major life events,
-Surprisingly, 17% of policy buyers are aged 65+, suggesting families are opting for coverage later in life, often when premiums are higher and benefits are reduced,
-Just 12% of policies include elderly parents, revealing low intergenerational insurance planning — a concern in a country with rising dependency ratios,
-Urban centers lead in adoption: Bengaluru (21%), Delhi-NCR (13%), Hyderabad (9%), Mumbai (8%), and Pune (6%) collectively account for over half of ACKO’s customer base
Why This Matters Now More Than Ever
While Gen Z is actively prioritizing physical and mental wellness, they often overlook financial preparedness, especially when it comes to long-term health planning. With a rising incidence of chronic conditions like PCOS, anxiety, and autoimmune disorders, the need for health coverage is no longer optional.
Add to this the steep 14% medical inflation in India, and early investment in health insurance becomes not just a smart move, but an essential safeguard against future healthcare expenses.
“Over the past year, the uptake among 20–25-year-olds has remained stagnant at just ~2%, highlighting a persistent lack of urgency despite rising health conversations in the digital ecosystem. The issue isn’t just awareness; it’s a deeper gap in relevance, access, and timing. Individuals need to understand that health insurance isn’t just a financial product, it’s a wellness tool. And like all good habits, the earlier you start, the better the outcome,”Animesh Das, MD & CEO, ACKO General Insurance.
“ At ACKO, we’re committed to designing flexible, digital-first products that resonate with Gen Z and empower them to take charge of their health finances early on. But this shift needs a collective push from insurers and employers to families and educators. Everyone has a role to play,” said Das.