Insurers in India look to Increase Insurance Premiums
As a consequence of higher reinsurance costs, insurance providers in India may potentially be eying a 15-20% rise in the term rates for life insurance policies.
According to an article by Asia Insurance Review, insurance companies in India are also more likely to insist of health checks, due to the fact that medically underwritten policies tend to attract relatively lower reinsurance costs, as indicated by a Times of India report.
Premiums on term insurance policies have dived more than 50% since liberalisation, according to the article; companies have been said to have been offering term insurance policies of up to INR10m (USD135,000) at a premium of INR6,000 as insurers seemingly battled it out in a price war.
Insurers in the country also accepted proposals without insisting on medical checks, according to the piece, based on the assumption that those who are wealthier are better placed to take care of themselves or have access to medical treatment, and therefore reducing the risk of mortality.