India’s Health Insurance Market Poised to Triple by 2032

India’s health insurance sector is set for a major leap, with its market size projected to grow from USD 15.99 billion in 2024 to around USD 38.2 billion by 2032, backed by a compound annual growth rate (CAGR) of 11.5%, according to a report by SkyQuest.

The rapid expansion reflects an increasing need for health-related financial protection as medical expenses soar and public awareness improves. A rise in treatment costs, evolving consumer expectations, and improved access to insurance have all played crucial roles in boosting demand.

India’s growing middle class is significantly influencing the shift. As incomes rise, more people are opting for personal and family health insurance. Although group health plans offered by employers remain popular for their cost-effectiveness and wide coverage, individual policies are gaining ground due to their customization benefits.

Hospitalisation coverage continues to dominate policy types, but there’s growing interest in critical illness insurance, which offers lump sum payouts for serious diseases like cancer or heart conditions—often helping to offset income loss during treatment.

India’s Insurance Regulatory and Development Authority (IRDAI) has also taken key steps to improve insurance access. Recent policy changes have made it easier for older individuals and those with pre-existing conditions to get coverage—expected to drive broader market penetration.

GlobalData forecasts that health insurance will account for 11% of India’s total insurance market by 2028, up from 9.5% in 2023. By 2028, the market value is expected to reach USD 23.8 billion, growing at a CAGR of 12.8% from 2024.