India’s health insurance market opened 2026 with strong premium growth, supported by tax changes and rising cross-border demand that could have implications for travel insurers monitoring outbound and non-resident Indian (NRI) flows.

Health insurance premiums rose 27.17% year on year in January 2026 to ₹5,414.54 crore, according to data cited by Indian broking house Angel One. General insurers reported health premiums of ₹2,187.98 crore, up 20.4%, while standalone health insurers grew 32.3% to ₹3,226.56 crore, increasing their share of the overall portfolio.

The uplift follows a goods and services tax (GST) rationalisation effective from January 2026, which reduced tax on specified individual retail health policies from 18% to 5%, lowering headline premiums and supporting new business. Government-backed schemes also remained significant, with gross world product (GWP) rising 37.78% year on year to ₹2,480 crore, reflecting the continued expansion of public health insurance programmes, including Ayushman Bharat.

Alongside domestic growth, NRI demand accelerated. A report by Indian insurance platform Policybazaar found NRI purchases of Indian health policies rose 126% year on year, driven by digital distribution, tax changes, and price differentials with overseas markets.

The Gulf Cooperation Council remains the largest source of demand, followed by Europe and North America, reflecting cost and access considerations.

Adventure specialist Much Better Adventures has identified India, Japan, and Jordan as its fastest-rising destinations for 2026.