MUMBAI: Non-life insurance is divided over what some players are offering, which they describe as ‘.group-based pricing‘ To increase premium price For policies where there are consistently high claims.
The insurance industry is in crisis health insurance pricing Because many companies see claims in excess of the premium. At the same time, many customers are leaving because of this. ineffective premium,
The proposal was largely supported by standalone health insurance companies during a recent industry meeting with the regulator. According to insurers, there are some policies where they have been paying claims continuously for more than a decade. Also, there are people who have been paying for decades without any claims, but are seeing their premiums increase manifold due to the overall amendments with higher rates for senior citizens.
“While there may be logic in this proposal from an actuarial point of view – insurance is for unexpected risks – and it is against the principle of distribution of risks in insurance,” said an official of a public sector general insurance company.
The strongest objection is because the proposal would make insurance more expensive for those who need it most. A Digital Insurance spokesperson said, “The proposal disproportionately impacts people with chronic health conditions by imposing punitive premium loadings at renewal. This practice not only exacerbates health care disparities but also ignores the continuing care needs of these individuals, “That impacts their access to potential treatments.” ,
Industry data shows that while health insurance is growing at a rate of 35%, a large portion of this growth comes from increases in premiums. This is due to policyholders purchasing more insurance due to higher rates as well as increased hospitalization costs.
Insurers say health care costs have increased after the pandemic due to additional diagnoses. One suggestion to make health insurance more affordable is to reduce GST on health insurance premiums.
The insurance industry is in crisis health insurance pricing Because many companies see claims in excess of the premium. At the same time, many customers are leaving because of this. ineffective premium,
The proposal was largely supported by standalone health insurance companies during a recent industry meeting with the regulator. According to insurers, there are some policies where they have been paying claims continuously for more than a decade. Also, there are people who have been paying for decades without any claims, but are seeing their premiums increase manifold due to the overall amendments with higher rates for senior citizens.
“While there may be logic in this proposal from an actuarial point of view – insurance is for unexpected risks – and it is against the principle of distribution of risks in insurance,” said an official of a public sector general insurance company.
The strongest objection is because the proposal would make insurance more expensive for those who need it most. A Digital Insurance spokesperson said, “The proposal disproportionately impacts people with chronic health conditions by imposing punitive premium loadings at renewal. This practice not only exacerbates health care disparities but also ignores the continuing care needs of these individuals, “That impacts their access to potential treatments.” ,
Industry data shows that while health insurance is growing at a rate of 35%, a large portion of this growth comes from increases in premiums. This is due to policyholders purchasing more insurance due to higher rates as well as increased hospitalization costs.
Insurers say health care costs have increased after the pandemic due to additional diagnoses. One suggestion to make health insurance more affordable is to reduce GST on health insurance premiums.
