Policybazaar: India Embraces 'Protection-First' Trend in 2025, Digital Payments Soar

• India's insurance behavior shifted to 'protection-first' in 2025, with longer commitments and digital-first transactions, as per Policybazaar.
• Health insurance saw a 31% rise in average sum insured to ₹19 lakh, with unlimited plans surging and Tier 3 cities dominating purchases.
• Term insurance grew 37%, led by 25-40 age group, while motor insurance saw EV policies jump 2.5x with high add-on adoption.
• Travel insurance issuance rose 15% with higher covers, and millennials drove investment purchases, opting for long-term plans.
• Digital payments dominated, with UPI accounting for 64.3% of premium payments and UPI Autopay adding 1.5 million new users.

Why It Matters: India's insurance market is rapidly evolving towards comprehensive protection, digital adoption, and long-term financial planning.