HDFC ERGO General Insurance unveils findings of ‘Exploring Gen Z and Millennials mindset towards insurance ‘ survey

2025-07-24 04:32:45 Business

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Bengaluru, 10th July, 2025: HDFC ERGO General Insurance Company, India’s leading private sector General Insurer, unveils the findings of ‘Exploring Gen Z and Millennials mindset towards insurance ‘, a custom survey commissioned by HDFC ERGO General Insurance Company and conducted by NielsenIQ (NIQ), the leader in consumer intelligence. The survey has been conducted with 2200 respondents in 17 Tier 1 & Tier 2 cities across India. While Tier 1 are cities with population 1 lakh and above Tier 2 are cities with population between 50,000 and less than 1 lakh.

The survey highlights the mindset, attitudes and consideration of Gen Z and Millennials towards health insurance. Out of 1400 surveyed, 61% millennials and Gen Z prefer to invest in health insurance.

Commenting on the survey, Anuj Tyagi, Managing Director and Chief Executive Officer, HDFC ERGO General Insurance said; “The Gen Z and Millennial contribute to more than 50% of India’s population, as compared to the world average of 47%, thus making it a vital force in shaping the country’s economy. This sect of population is in fact reshaping the insurance industry and pushing the insurers like us to rethink the way we offer customer experience. Their key expectations include transparency in processes, digital ecosystem with quick TATs, and hyper-personalised services. At HDFC ERGO, we believe in building meaningful interventions for our customers to make insurance a a part of their everyday lives. This survey reinforces our mission to empower the next generation with insurance that’s relevant, accessible, and responsive to their evolving needs.”

Factors driving the purchase of Health Insurance

Rising medical inflation puts a strain on individuals and families. A health insurance policy is therefore no longer a luxury but a necessity which helps in financial security and ensures peace of mind. Here, the study sheds light on the evolving consumer needs for health insurance and highlights the significant differences on how Gen Z and Millennials approach health insurance. Among 1400 surveyed, 37% consumers claim rising medical costs and need for protection against immediate medical expenses, as a driver for proactive financial planning, while 36% consumers invest in health insurance for additional wellness benefits such as health check-ups. Further out of 1400 respondents, 48% expect quick and responsive customer service while 47% are looking for access to educational resources in terms of service and support from the Insurance providers.

Lack of awareness is the key barrier

The report emphasises that out of 167 Gen Z, 44% do not invest in health insurance due to lack of awareness, whereas 43% millennials out of 393 surveyed believe that their existing coverage under corporate health insurance is sufficient and hence, do not purchase personal health insurance.

Urban India’s outlook towards Health Insurance

Out of 550 respondents, consumers have shown more interest towards pre-hospitalisation expenses. In Kolkata (51%), Bengaluru (49%), Mumbai (49%) and Chennai (47%), there is a strong expectation for Pre-hospitalisation charges to be included as standard feature in health insurance policies. Further, increased medical costs are a key trigger for consumers in these cities- Chennai (49%), Kolkata (47%), Bengaluru (47%), Mumbai (42%).

In order to ensure the affordability of health insurance premium payment, out of 300 respondents, 30% consumers from Hyderabad and 29% consumers from Mumbai seek flexible premium payment.

Key insurance buying trends among the tech savvy youth of India

Even though, Gen Z are reliant on technology and digital tools for everyday tasks and activities, yet, 67% Gen Z among 840 respondents require assistance and support leading to a significantly higher preference in purchasing policies through offline channels. Similarly, among 840 respondents, 60% policyholders have purchased their policies through offline mediums, due to high trust in agents. Therefore, a strong agent network continues to be crucial for deeper penetration of insurance across the country.

Important factors taken in consideration when evaluating health insurance plans

The national survey reveals that out of 1400 respondents, 27% consumers consider hospital network as an important factor and 24% consumers seek easy policy terms when evaluating health insurance policies.

Key influencers in health insurance decision making process

Out of 167 Gen Z, 57% rely directly on insurance companies and word of mouth from friends and family whereas, out of 393 Millennials, 61% prefer comparing health insurance policies on aggregator websites.

1 Sample size - 1400 millennials & Gen Z

2167 Gen Z

3 505 Gen Z

4 840 Respondents

About HDFC ERGO:

HDFC ERGO General Insurance Company Limited, one of the leading private sector general insurance companies of India, whose promoters are HDFC Bank Limited, one of India’s leading private sector banks, and ERGO International AG, the primary insurance entity of Munich Re Group.

A digital-first company, transforming into an AI-first company, HDFC ERGO is a leader in implementing technology to offer customers the best-in-class service experience.

HDFC ERGO offers a complete range of General Insurance products including Health, Motor, Home, Agriculture, Travel, Credit, Cyber and Personal Accident in the retail space along with Property, Marine, Engineering, Marine Cargo, Group Health and Liability Insurance in the corporate space.