More women take charge of health insurance but still have some distance to go

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• Women now account for 21 percent of new health insurance policies
• Younger women under 30 are increasingly buying their own coverage
• Women's preventive health check-ups increased 127% year-on-year

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As more women enter the workforce and take greater control of financial decisions, early signs suggest they are also beginning to take charge of their own health protection.

Data from a report by Star Health and Allied Insurance, based on its retail health portfolio covering over 10 million women, shows that women account for 21 percent of new retail health insurance policies where they are the primary policyholder.

The share remains relatively small considering women make up nearly half of India’s population. According to the 2011 Census, there are 943 women for every 1,000 men, representing about 47 percent of the country’s more than 1.4 billion people.

“While women make up nearly half of India’s population and ideally should represent a similar share of buyers, the gap still exists. That said, it is encouraging to see more women actively taking charge of their health insurance decisions,” said Anand Roy, MD & CEO, Star Health Insurance.

“Traditionally, insurance has been a male-dominated sector, with most purchase decisions taken by men, whether in life or health insurance but we are seeing encouraging shifts. Nearly 10 million women are now covered under our plans this year alone, accounting for close to 40 percent of our policyholders,” Roy said.

Women entering the insurance ecosystem earlier

One of the more notable shifts is the growing participation of younger women in health insurance purchases.

According to Star Health’s data, nearly 25 percent of women policy buyers are under the age of 30, suggesting that health protection is increasingly being integrated into financial planning much earlier in life.

“Younger women are increasingly purchasing health insurance on their own, which reflects a clear shift in mindset and greater financial awareness,” Roy said.

Industry data suggests a gradual shift

Data from other insurers points to a similar trend. A recent report by Care Health Insurance shows that women account for around 28–30 percent of proposers in its individual health insurance portfolio, with the share steadily rising over the past few years.

The shift is unfolding alongside broader changes in women’s economic participation. Women’s employment rate in India has nearly doubled, from 22 percent in 2017–18 to about 40.3 percent in 2023-24, with 1.56 crore women entering formal jobs over the past seven years, labour ministry data says.

Despite these gains, however, a self-protection gap continues to persist. Insurers say women often manage healthcare decisions for the family but may not prioritise buying health insurance in their name.

Preventive healthcare awareness is rising

Beyond ownership of policies, insurers are also seeing signs of changing healthcare behaviour.

According to Star Health’s report, preventive health check-ups among women rose 127 percent year-on-year, while uptake among women aged 40 and above increased 143 percent. The rise points to growing awareness around early diagnosis and routine health monitoring.

Public health data shows that non-communicable diseases such as hypertension, diabetes, anaemia, cervical cancer and breast cancer are among the most prevalent health concerns affecting women, increasing both health and financial risks across age groups.

Women are opting for higher insurance coverage

Coverage levels among women policyholders are also gradually increasing.

Star Health’s data shows that the average sum insured purchased by women has increased from Rs 5.5 lakh five years ago to about Rs 10.5 lakh today. Care Health Insurance says the average coverage chosen by women typically ranges between Rs 10 lakh and Rs 15 lakh.

The shift reflects rising awareness around medical inflation and the growing cost of hospitalisation, particularly in urban areas where treatment expenses can escalate quickly.

How much health insurance cover is enough?

The starting point when choosing health insurance should be assessing family size, location and potential healthcare needs, say experts.

“Factors such as family size and the city they live in, should be considered as healthcare costs vary significantly. Today, a minimum cover of around Rs 10 lakh has become necessary, whether you live in a smaller town or a large city,” Roy said.

Higher coverage may be necessary for families in large cities where hospitalisation costs can rise sharply.

What women should evaluate before buying a policy?

Apart from the coverage amount, the suitability of a health insurance policy depends on an individual’s life stage, family responsibilities and healthcare needs. Industry experts say factors such as maternity benefits, outpatient care and access to nearby hospitals can play an important role in determining the right policy.

“If maternity benefits are important, one may consider policies that include such coverage. Equally important is evaluating the insurer’s hospital network nearby, as well as benefits such as OPD coverage and doctor consultations,” Roy said.

Buyers should also check for waiting periods for pre-existing conditions, sub-limits on treatments, claim settlement record and the scope of coverage for preventive health check-ups. These features can significantly influence how useful the policy is during an actual medical emergency.

Takeaways

While women’s participation in health insurance ownership is improving, the gap with men remains significant.

According to the latest annual report by the Insurance Regulatory and Development Authority of India (IRDAI), women account for around 34 percent of life insurance policyholders, suggesting that participation is rising but still far from parity.

Experts say buying health insurance earlier in life can help secure lower premiums and reduce the risk of exclusions related to pre-existing conditions. It can also offer financial protection as medical costs continue to rise.

As more women begin to take charge of their finances, health insurance is gradually becoming an important part of overall financial planning.