MUMBAI: First-time health insurance buyers on Policybazaar increased 277% to nearly 18 lakhs between FY22 and FY26, with smaller cities accounting for 67% of new customers, according to data shared by the online insurance platform. The trend points to wider adoption beyond metropolitan centres, with buyers also opting for higher coverage.The number of first-time buyers grew 5% in FY23, 40% in FY24, 67% in FY25 and 54% in FY26. The data comes amid IRDAI’s focus on expanding insurance coverage to the “missing middle”, or people who remain outside the insurance system.First-time buyers from Tier 2 and Tier 3 cities grew 351% between FY22 and FY26, outpacing overall growth in each of the four years. Their share of new buyers rose to 67% in FY26 from 56% in FY22. Around seven in 10 additional first-time buyers during this period came from these cities.Cities in Kerala recorded some of the highest growth rates. Malappuram grew 128.34% year on year, followed by Kottayam at 122.66%, Alappuzha at 120.76%, Thiruvananthapuram at 114.74% and Palakkad at 113.63%. Nagpur and Coimbatore recorded growth of 53.33% and 57.40%, respectively.People aged 26 to 35 accounted for 27.66% of first-time buyers, followed by those aged 36 to 45 at 21.98%. Together, the 26 to 45 age group represented 49.64% of new buyers. Only 7.36% of policies covered families whose eldest member was above 65.Men accounted for 82.81% of first-time buyers, while women made up 17.19%, indicating a substantial gender gap in new health insurance adoption.The average sum insured among first-time buyers doubled from Rs 6.3 lakh in FY22 to Rs 13.1 lakh in FY26. In FY26, 68% of first-time policies offered coverage of Rs 10 lakh or more, compared with 32% in FY22. A Rs 10 lakh cover was the most common choice, accounting for 51% of policies. The data also noted an increase in coverage following the removal of GST in Sept 2025.According to Sarbvir Singh, joint group CEO of PB Fintech, the parent of Policybazaar, growth in health insurance depends on bringing new customers into the system, particularly in smaller cities. “Over the last four years, a growing number of people have taken that step by buying their first health policy, and more of them each year are in Tier 2 and 3 cities. They are in their late twenties and thirties, with families to protect, and they are starting with larger covers than first-time buyers did in FY22,” he said.Singh said first-time buyers need help understanding their policies and navigating claims. “Our job is to take them to a policy they understand, and then stand by them at the time of claim,” he said.