The adoption of health insurance in India continues to rise, however, health insurance customers’ experience with the health insurers remains under pressure, according to a new report.
The second edition of Hansa Research’s Health Insurance Customer Experience Score (CuES) 2026 report released on 19 August 2026 reveals a comprehensive view of how health insurance customers’ expectations, behaviours and experiences are evolving across the country.
A press release by Hansa Research said the report is based on the responses from 4,000 respondents across more than 12 health insurance brands. The findings highlight a significant shift in the mindset of the health insurance consumer.
The report found that financial protection against rising medical expenses remains the leading purchase motivation for 54% of buyers in 2026, up from 48% in 2025. Yet, despite increasing adoption, the overall customer experience remains under pressure.
The Industry Net Promoter Score (NPS) stands at 50% in 2026, compared with 55% in 2025, suggesting that consumer expectations are rising faster than the experience being delivered. This decline coincides with rapid industry evolution, where heightened competition, technological advancements, and regulatory focus are raising expectations around service, transparency, and policyholder protection.
The report reveals that the consumers are increasingly asking whether insurers can make healthcare easier to access, simpler to navigate, and more reassuring when they need it most. Experiences across key moments; particularly product relevance, purchase and onboarding, customer support and claims are becoming critical differentiators.
The report found that although brand remains an important foundation driven by trust, transparency, ease of dealing, value, digital capability, innovation, and hospital networks, the immediate opportunity lies in consistently translating that brand promise into everyday customer interactions.
As health insurance claims are getting faster, the customer experience on claims still has room to improve. For consumers, the value of health insurance becomes most tangible at the time of hospitalisation or claims. While operational claim settlement metrics are improving, the claims journey continues to present points of friction, with 4 out of 10 policyholders who made a claim reporting at least one issue.
Problems relating to the provider or hospital network are the most commonly reported challenge, followed by delayed pay-outs and pre-authorisation issues.
The report also found that there are encouraging signs of speed, with the majority of claimants reporting that their cases were processed within two weeks. As technology and AI increasingly enable faster processing, fraud detection, and personalised engagement, insurers have an opportunity to use these capabilities not just for automation, but to actively reduce anxiety throughout the healthcare journey.
Hansa Research CEO Praveen Nijhara said, “As adoption expands and medical costs continue to rise, consumers are becoming more discerning about the protection they purchase and the value they receive from it. Their expectations are extending beyond the policy itself to the experience that surrounds it, with greater demand for simplicity, responsiveness and confidence throughout the policy lifecycle.
“For insurers, this is raising the bar for differentiation. The brands that recognise this shift and deliver a seamless, reassuring experience will be best positioned to build stronger and more enduring customer relationships.”
Key Findings from the Health Insurance CuES 2026 report include:
1) Financial protection remains the primary purchase driver:
54% of health insurance buyers cite protection against rising medical expenses as their main reason for purchasing insurance, up from 48% in 2025.
2) Claims friction persists despite operational gains:
While operational difficulties reduced, friction surrounding pre-authorization turnaround times, documentation continues to exist.
3) Digital engagement is growing:
Mobile apps and self-service platforms are increasingly being used for policy administration, renewals and claim tracking, particularly among younger policyholders.
4) Price Transparency Drives Retention:
Unannounced premium increases and hidden terms continue to be the leading drivers for policy porting and switching. Clear communication during policy renewal cycles is proven to directly boost retention rates.
5) Better hospitals matter as much as better insurance
Faster claims and stronger hospital networks are the two most important improvements consumers want from their insurers, signalling that the future of health insurance experience is closely linked to access to quality healthcare.
