As more Indian women enter the formal workforce and gain financial independence, their participation in the health insurance market is improving—but it still trails significantly behind men, highlighting a persistent protection gap.

Data from Care Health Insurance shows that women proposers account for 28–30% of its individual health insurance portfolio, a share that has gradually increased in recent years. While the trend suggests rising awareness about personal health protection, insurers say women’s insurance ownership and coverage levels remain below optimal.

The shift comes at a time when women’s participation in the workforce is expanding rapidly. Government data indicates that women’s employment has nearly doubled to over 40%, with 1.56 crore women entering formal jobs in the past seven years. The growing income base is slowly translating into higher financial decision-making power, including the purchase of health insurance.

Even so, the average coverage opted for by women remains moderate. According to Care Health Insurance, women policyholders typically choose a sum insured between ₹10 lakh and ₹15 lakh, reflecting a gradual move toward independent coverage amid rising healthcare costs.

“Women have traditionally been the health anchors of their families, often prioritising everyone else’s well-being before their own,” says Manish Dodeja, chief operating officer at Care Health Insurance. While more women are increasingly taking charge of household financial and healthcare decisions, he says their own long-term health security has historically taken a back seat.

That pattern, however, is beginning to shift. Dodeja notes that the share of women proposers in the company’s individual policy base has been rising steadily, although there is still “meaningful headroom” to improve coverage adequacy as medical costs continue to climb.

Rising healthcare costs push need for higher coverage

Healthcare inflation has emerged as a major factor shaping insurance decisions. With hospitalisation costs escalating and treatment journeys becoming longer, insurers say individuals—especially women—need higher and more comprehensive coverage.

Insurers are also witnessing changing preferences among women buyers. Apart from standard hospitalisation cover, women policyholders are increasingly opting for add-on riders that expand the scope of protection. These include maternity benefits such as IVF and surrogacy coverage (as per policy terms), OPD consultations and diagnostic benefits, automatic recharge features that restore the sum insured once exhausted during a policy year, and instant cover options that shorten waiting periods for certain treatments.

Wellness-linked features are also gaining traction. Women are increasingly opting for preventive health check-ups designed specifically for women and benefits such as return-of-premium incentives tied to wellness milestones, signalling a shift toward preventive healthcare and long-term health planning.

Participation gap persists across the insurance ecosystem

The rising focus on coverage is also linked to the growing burden of lifestyle and chronic illnesses among women. Public health data shows increasing prevalence of non-communicable diseases such as hypertension, diabetes, breast and cervical cancer, along with widespread anaemia, across age groups.

Despite improving awareness, women’s participation gap in insurance persists across the industry. According to the latest annual report from the Insurance Regulatory and Development Authority of India (IRDAI), women account for around 34% of life insurance policyholders. However, their representation in the distribution ecosystem remains lower—about 29% in standalone health insurers and roughly 32% across the broader insurance sector.

For insurers, bridging both the ownership gap and the adequacy gap will be critical as healthcare costs rise. As more women enter the workforce and gain financial independence, industry executives expect their role as primary policyholders—and not just dependents—to expand in the coming years.