Why Insurance isn't Enough: How FinTechs Like Fibe are Bridging the Healthcare Financing Gap

India's health insurance market grew to Rs. 1.3 trillion in 2024 and is projected to reach Rs. 2 trillion by 2028, reflecting the country's socio-economic growth. Yet, many remain uninsured or underinsured, highlighting a critical gap. Premium costs have risen sharply.over the past decade, 52% of policyholders experienced a CAGR of 5-10%, with premiums doubling or tripling over ten years.

- By Akshay Mehrotra, Co-Founder & Group CEO Fibe

Over 75% of Indians are either uninsured or underinsured, and despite growing awareness, nearly 48% of policyholders continue to opt for health covers of Rs. 5 lakhs or less, leaving many vulnerable to rising medical costs. These numbers reflect a hard truth: in today's rapidly evolving healthcare landscape, being insured doesn't always mean being financially secure. Despite having health insurance, millions of Indians still find themselves caught in a difficult middle ground, where their policies fall short, and out-of-pocket expenses spiral beyond control. From high-premium insurance plans to procedures not covered under standard policies, the financial burden often lands squarely on the shoulders of patients.

This widening gap between coverage and actual financial need has sparked a new wave of innovation in the Indian healthcare financing space, led by FinTechs. By leveraging technology and empathetic design, they are revolutionising how individuals and families finance their medical needs, making healthcare and health insurance more accessible, affordable, and inclusive.

The Healthcare Reality Check

India's healthcare system continues to face a triple challenge of access, affordability, and awareness. Even as health awareness improves, the financial systems supporting this growth have not kept pace. With out-of-pocket expenses accounting to a substantial amount of the total healthcare expenditure, families often delay or decline critical treatments due to lack of immediate funds.

Even when individuals opt for health insurance, it rarely guarantees a smooth financial experience. Premium costs, non-covered treatments, co-pays, and the need for multiyear or high-ticket policies remain formidable barriers, especially for India's middle-income and underserved segments. This is where FinTech innovation is stepping in-not to replace insurance, but to complete the picture.