India’s rapidly digitising health insurance market still lags significantly behind China in customisation and tailored coverage, according to a new industry report that underscores structural and market gaps despite robust digital adoption. The findings point to a widening disparity between the two Asian giants in how health policies are personalised for corporate and large-group customers — a key measure of insurance sophistication.

According to the report released on Monday, around 50 per cent of Indian insurers offer customisation support for clients with more than 1,000 employees. In comparison, 92 per cent of insurers in China provide such tailored services, reflecting a substantially more developed ecosystem for managing large-group and bespoke health plans.

While India has seen rapid digitalisation of health insurance platforms, with many policies now issued digitally and claims processing increasingly automated, challenges remain in translating this digital growth into personalised product offerings. Insurtech firms and traditional insurers in India have improved digital onboarding and processing, but many lack the analytics and risk modelling infrastructure required to tailor plans to diverse customer segments at scale.

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Experts say this gap partly reflects differences in market maturity and regulatory environments. China’s insurance market benefits from extensive digital platforms and AI-driven underwriting and big data analytics that enable insurers to craft bespoke products, optimise pricing, and streamline claims settlement. Chinese insurtechs have aggressively integrated technology into product development, giving customers more flexible and personalised health insurance solutions.

In India’s case, although digital adoption is widespread — with many customers completing end-to-end purchases and claims online — product customisation has not kept pace. The focus has remained largely on broad coverage and expanding access rather than deeply personalised policies tied to individual risk profiles or employee needs. Industry observers also note that awareness of customised offerings among Indian corporate buyers remains limited.

Analysts suggest that addressing this gap will require insurers to invest in advanced analytics, AI capabilities, and customer data platforms that can segment populations more granularly and design products accordingly. Regulatory encouragement for innovation, combined with stronger digital literacy and data infrastructure, may help India close the customisation gap with its East Asian rival, particularly as digital health and tech-enabled insurance continue expanding.

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