Group health insurance premium rates to remain at lower-end

India Infoline News Service | Mumbai |

According to Bharti AXA General, despite losses in group health insurance, the insurer has been unable to raise rates due to competition

The premium rates for group health insurance are likely to fall by 5% to 10% at the time of policy renewals in April.
According to insurers, although the number of claims have increased in the group health insurance segment, high competition among companies have led the insurers to keep premium rates at the lower end.
Group health insurance is the health cover that employers buy for their employees. It is a loss-making portfolio for general insurance companies with a total claims ratio of around 110%. For example: For every Rs. 100 they get as premium, they are paying out claims worth Rs. 110.
According to Amarnath Ananthanarayan, MD and CEO, Bharti AXA General Insurance, despite losses in group health insurance, the insurer has been unable to raise rates due to competition.
He said that in case of group health insurance, the company is planning to offer products such as outpatient department coverage for parents and higher deductible super top-up cover which the employee can purchase separately under the group plan.
The company is shift from hospital reimbursement policy to offer other health insurance related products.
The health insurance industry in India is a highly competitive space with 23 general insurance companies and five standalone health insurance companies.
 

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