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Health insurance uptake rises but customer experience worsens: report
Health insurance uptake rises but customer experience worsens: report
Consumer demand for health insurance in India continues to rise, but customer experience is deteriorating, according to the second edition of Hansa Research's Health Insurance Customer Experience Score (CuES) 2026 report, released…
Consumer demand for health insurance in India continues to rise, but customer experience is deteriorating, according to the second edition of Hansa Research's Health Insurance Customer Experience Score (CuES) 2026 report, released on 19 August 2026. The study, based on responses from 4,000 people across over 12 health insurance brands, found that 54% of buyers now cite financial protection against rising medical expenses as their main purchase motivation, up from 48% in 2025.
Despite higher adoption, the industry Net Promoter Score (NPS) fell to 50% in 2026 from 55% in 2025, indicating that consumer expectations are outpacing service delivery. The report notes that 4 out of 10 policyholders who filed a claim reported at least one issue, with problems related to hospital networks being the most common, followed by delayed payouts and pre-authorisation hurdles. Claims are getting faster, but friction persists around documentation and turnaround times.
Digital engagement is growing, especially among younger policyholders using mobile apps for policy management and claim tracking. Price transparency is a key retention factor, as unannounced premium increases and hidden terms drive policy switching. The report suggests that insurers have an opportunity to use technology and AI to reduce anxiety and improve the overall healthcare journey.
Indian Opinion Analysis
The Hansa Research CuES report shows a classic growth pain: as health insurance penetration deepens, expectations around service quality rise faster than insurers can adapt. With medical inflation running high, the 54% citing financial protection underscores that insurance is increasingly seen as a necessity, not a luxury. The NPS drop from 55% to 50% is modest but significant in a market where word-of-mouth and trust are vital for retention. The finding that 4 in 10 claimants face issues highlights a gap between operational metrics and actual user experience. Watch for regulatory moves by IRDAI on standardisation of claims processes and network adequacy, which could shape insurer strategies in the coming quarters.
The next concrete signal will be how the top 12 health insurers respond to these findings in their product and service upgrades ahead of the renewal season starting January 2027.
Source: asiainsurancereview.com
This story was synthesised by AI from the source linked above.
