Young Indians drive digital health insurance growth
Star Health’s FY26 data highlights the growing trend of young Indians driving the digital health insurance revolution. The company’s direct digital channel data reveals that around 66% of customers buying fresh health insurance policies through this channel were below 40 years of age.
These young customers, mostly salaried professionals, are opting for higher health insurance coverage, with an average Sum Insured of ₹14 lakh, compared to the company-wide average of ₹12 lakh for fresh policies. This suggests a greater awareness of rising healthcare costs among this demographic.
Digital Adoption Beyond Metros
Star Health’s direct digital channel recorded 38% year-on-year growth in fresh health insurance policies in FY26, with only 22% of fresh-growth GWP coming from the top six metros. This indicates growing digital adoption across non-metro and Tier 2 markets.
According to the United Nations, India has the largest youth population in the world, with over 371 million young people. This creates an unprecedented opportunity to improve long-term financial resilience through early health insurance adoption.
Star Health’s FY26 direct digital channel data offers insights into how this demographic is engaging with health insurance, particularly through digital-first purchase journeys. Nearly 60% of customers buying health insurance through this channel are salaried professionals, indicating that health insurance is becoming an integral part of financial planning among the working population.
Shift in Consumer Behavior
The data reflects a growing preference among digitally savvy consumers to secure health protection earlier in life. This shift in consumer behavior is driving Star Health to evolve its digital approach, with technology playing a central role in making health insurance more accessible, personalized, and seamless for today’s digitally connected consumers.
Star Health has built a technology-led ecosystem focused on digital payments, multilingual engagement, AI-enabled assistance, and personalized human support across the digital purchase journey. The company’s digital purchase journey is fully enabled for online payments, with 100% of premium collections completed digitally.
Customers can receive assistance in 9 Indian languages through trained tele-calling teams, making the digital buying experience more inclusive and accessible. AI-powered voice bots also provide multilingual assistance in nine languages, and AI-enabled chatbots are being introduced to further enhance customer convenience.
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Every customer is assigned a dedicated Relationship Manager, ensuring personalized guidance despite a digital buying journey. 100% of customer conversations are monitored using Artificial Intelligence to improve quality, compliance, and continuous learning. Mr. Deepakh Himmatsinghka, Chief Business Officer – D2C Vertical, Star Health and Allied Insurance, noted that the company’s D2C data reflects a clear shift in fresh health insurance policy buying among younger Indians.
With the channel growing 38% year-on-year in FY26, the trend is clear: young, digitally connected consumers are not only buying health insurance earlier but are also choosing higher levels of protection. As digital adoption expands across India, Star Health remains focused on building technology-enabled health insurance experiences that make health insurance more accessible, intuitive, and personalized for consumers, with Star Health offering guided support through its customer service.
Mr. Himanshu Walia, Whole-Time Director and Chief Marketing Officer, Star Health and Allied Insurance, praised the company’s digital initiatives, stating that young Indians are changing the way health insurance is researched, bought, and serviced, expecting a digital-first experience with trust, clarity, and expert support.
The company’s digital approach has led to a significant increase in the average Sum Insured chosen by customers, with those buying directly through the digital channel opting for an average Sum Insured of ₹14 lakh. This is higher than the company-wide average of ₹12 lakh for fresh policies, indicating a greater awareness of the importance of health insurance among younger consumers.
Close to 10% of the fresh policies are options for higher-benefit products, such as Critical Illness benefit and Hospital-Cash, showcasing an in-depth understanding of the category among younger consumers. Almost 16% of the fresh Health Insurance GWP in FY26 was sourced via the D2C channel, highlighting the growing importance of digital channels in the health insurance industry.
Personalized Support and Guidance
Star Health’s commitment to providing personalized support and guidance is reflected in its “Talk to Star” service, which offers guided support to eligible policyholders seeking Home Healthcare or planned hospitalization assistance. Customers can call the dedicated number and press 1 for Home Healthcare or press 2 for planned hospitalization, and the service helps them understand coverage, network hospital options, the cashless process, required documents, and care pathways before admission or home-based treatment.
Non-policyholders can also access free 24/7 Virtual OPD consultations through the Star Health Customer app, demonstrating the company’s efforts to make health insurance more accessible and intuitive for consumers. With its strong multi-channel distribution network, robust bancassurance and financial institution partners, and 16,000+ network hospitals, Star Health is well-positioned to continue driving growth in the health insurance industry and providing innovative solutions to meet the evolving needs of its customers.
