What is driving the shift to modular health plans in India?

Sustained medical inflation, combined with diverse healthcare needs and digital adoption, is driving Indian insurers to move toward more customizable health insurance plans.

How are insurers using technology to balance flexibility and cost in modular health plans?

Insurers are leveraging AI-backed risk assessment and flexible payment structures to tailor coverage without adding unnecessary expenses, while digital interfaces enable real-time plan comparisons for customers.

What are the key considerations for successful personalization of health insurance in India?

Industry experts suggest that while insurers are ready with modular offerings, consumer readiness and product clarity remain crucial for wider adoption. Responsible customization, where additional benefits are linked to verified health data and preventive care, is also important for ensuring long-term financial security.

Home / Business and Economy / Insurers Redesign Health Policies to Tackle Rising Medical Inflation

Insurers Redesign Health Policies to Tackle Rising Medical Inflation

13 Nov

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Summary

Medical inflation in India averages 12-14% annually
Insurers shift to modular, data-led health plans to align coverage with individual needs
Demand for personalized options driven by digital adoption and pandemic awareness

Insurers Redesign Health Policies to Tackle Rising Medical Inflation

As of November 13, 2025, rising medical inflation in India has prompted insurers to move away from uniform health policies toward more modular and personalized plans. According to National Health Accounts data, medical inflation in India has averaged 12-14% annually, outpacing general inflation and eroding household budgets.

To address this challenge, insurers are now focusing on customized offerings that allow customers to select specific features, such as outpatient care, wellness rewards, or chronic care support, aligning coverage with individual requirements and budgets. This trend is being driven by diverse healthcare needs and the increasing adoption of digital tools.