New Delhi [India], September 29 : Health insurance renewals in the country have reached record-high persistency levels in FY26, driven by the rise of modular, cost-effective, and high-cover policies, according to a report by Policybazaar.
The report noted that the last two years have seen a significant increase in consumer-friendly, modular health plans that offer long-term value. These plans now cater to diverse segments based on age, city tier, and pre-existing conditions, making health insurance more accessible to a wider audience.
It stated "Health insurance renewals touching all-time high persistency in FY26; Modular, cost-effective and high-cover policies drive surge"
The report highlighted that the surge in renewals is largely due to new-generation modular plans featuring cumulative bonuses and other new-age benefits.
Customers are also becoming increasingly aware of health insurance amid rising lifestyle diseases such as diabetes, hypertension, cholesterol, asthma, heart disease, and obesity.
The company reported a 25 per cent increase in the share of customers with lifestyle diseases in its new business mix.
Plans with cumulative bonus features, which automatically increase cover every year irrespective of claims, have emerged as a key factor driving persistency.
These plans allow substantial growth in total cover at a minimal additional premium, encouraging policyholders to continue with the same plan and build long-term coverage.
The report added that many policyholders upgrade their plans during renewals by adding new features and popular riders. Notably, bonus cover riders, which increase the base cover annually regardless of claims, have an attachment rate of 15 per cent during renewals.
In terms of demographics, the report mentioned that the people aged 30 and above constitute about 80 per cent of the consumer base and show the highest likelihood of renewing their policies. Family floater plans have also shown higher persistency ratios compared to individual policies.
Both metro and smaller-city customers are displaying strong stickiness in renewals, reflecting a growing awareness of health insurance across India.
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