Policybazaar: India's smaller cities drive 62% of new health policies, covers grow.

• Policybazaar report indicates Tier-2 and Tier-3 regions now drive 62% of new health policies, surpassing metros.
• Non-metro areas are opting for significantly larger health covers, with ₹10-14 lakh and ₹15 lakh+ plans seeing substantial growth.
• Customers in smaller towns are customizing policies with add-ons and choosing modular plans bundling multiple benefits.
• Monthly payment options (EMI) are boosting penetration, especially in Tier-3, and family-floater plans are more popular in non-metro regions.
• The trend reflects a deeper understanding of healthcare costs and a maturing market, with renewal growth mirroring new sales.

Why It Matters: Smaller Indian cities now lead health insurance growth, reflecting evolving consumer needs.