The drivers for this new trend has been attributed to rapid urbanisation, sedentary lifestyle, stress and poor eating habits.
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The health insurance segment is seeing a new trend of disease-specific policies propagated by the younger generation and those who are in their mid-career. The current generation, particularly those in the age group of 30-40 years share the mindset of identifying which diseases they’re most likely to contract and are picking up disease-specific covers, especially diabetes-specific cover plans, according to insurers.
The drivers for this new trend have been attributed to rapid urbanisation, sedentary lifestyle, stress and poor eating habits. The reason for predilection towards diabetic cover is sedentary lifestyles of young professionals and the possibility of saving on premium costs and a full-body health cover would cost more.
“Now, there are disease-specific covers available, and people have started buying them. Diabetes is particularly popular as per observation of some clear emerging trends,’‘ Sharad Mathur, Managing Director and CEO, Universal Sompo General Insurance, told businessline.
“We’ve seen this across different segments of customers – Baby Boomers, Gen X, Gen Y and even Gen Alpha – each have a very distinct thought process. They’re extremely well-informed these days and are preferring disease-specific products and the popular being the diabetes cover,”‘ he added.
“I am working for almost 16 hours a day without moving from my workstation. As my doctor warned of diabetes on account of my lifestyle, I preferred to buy it alone’‘ M Siva Krishna, who works for an IT major here, said.
Meaningful shift
According to Venkatesh Naidu, CEO – Bajaj Capital Insurance Broking, the Indian insurance landscape is undergoing a meaningful shift, and much of this is being driven by younger generations.
“Individuals between 25 and 35 years are increasingly viewing insurance not just as a safety net, but as an active component of their lifestyle and financial planning. There has been a surge in interest for condition-specific health covers. At BajajCapital Insurance Broking Ltd, we’ve recorded an 18-20 per cent year-on-year increase in diabetes-related cover inquiries,’‘ he said.
Ramit Goyal, Chief Distribution Officer, Future Generali India Insurance Company, said contrary to the traditional perception of insurance as a necessity only in the later stages of life, there is an increasing awareness among younger population which is driving them to choose health insurance with a specific focus on non-communicable diseases (NCDs), including diabetes, hypertension and cardiovascular problems.
“The 25–35 cohort is digitally savvy and prefers seamless, paperless policy journeys. They also want personalised covers that adapt to their health risks, income levels and lifestyle needs — making modular plans and top-ups more appealing than generic insurance bundles,’‘ Goyal said.
Growth rate
According to General Insurance Council data, the growth rate in the health segment declined during 2024-25 to 8.98 per cent from 20.25 per cent in the previous year with the gross premium income of insurers at ₹1.18 lakh crore in FY25 as against ₹1.08 lakh crore last year. The disease-specific policies are gaining ground in the context of rising premiums. The sharp hike in premium and increasing claim rejections prompted customers to defer decision on buying health policies.
The duration of diabetes cover policies goes beyond one year in some products with individual variations among products of different companies.
Published on April 25, 2025
