India’s health insurance sector has achieved record-high renewal persistency in FY26, with modular, affordable, and high-coverage policies emerging as the key drivers, according to a new report by Policybazaar.
The report notes that consumer-friendly, customizable health plans introduced in recent years have significantly improved access across diverse segments ranging from different age groups and city tiers to customers with pre-existing conditions. Such plans, designed to deliver long-term value, are increasingly shaping renewal decisions.
A major factor boosting persistency is the popularity of cumulative bonus features, which raise coverage limits annually regardless of claims. This automatic growth in cover, at minimal extra cost, has encouraged customers to remain with the same insurer while expanding their protection. Bonus cover riders, attached to about 15% of renewed policies, further amplify this trend.
Health concerns are also playing a role. With lifestyle-related conditions such as diabetes, hypertension, heart disease, and obesity on the rise, Policybazaar reported a 25% increase in the share of such customers in its new business portfolio.
Renewals are not just about continuity but also upgrades. Many policyholders are enhancing coverage by adding riders and new features during the renewal cycle. Family floater policies, in particular, have demonstrated higher persistency rates compared to individual covers.
Demographic insights show that consumers aged 30 and above account for nearly 80% of the renewal base and display the highest stickiness. Importantly, this renewal momentum is visible not only in metros but also in smaller cities, signaling growing awareness and adoption of health insurance nationwide.
