Health insurers likely to hike premium rates

India Infoline News Service | Mumbai |

Most private insurers have shifted to in-house settlement of claims to improve efficiency and save cost

According to health insurers, inflating medical treatment costs and high claim settlement ratio may force them to hike premium rates by 15% to 20%, according to a media report.

Public sector general insurer New India Assurance (NIA) recently got IRDA (Insurance Regulatory Development Authority) approval to hike premium rates on its health insurance products. Many general insurers are also expected to hike their premiums following the leading insurer, the reports added.

Group health insurance, the health cover that employers buy for their employees, is a loss-making portfolio for general insurance companies with a total claims ratio of around 120% (for every Rs. 100 they get as premium, they are paying out claims of Rs. 120) and is a matter of worry for the industry.

Bharti AXA General Insurance has also requested IRDA to allow it to increase the health insurance premium rates by 10%-15%. The insurer is waiting for regulator’s approval.

Apart from increasing premium rates, most private insurers such as ICICI Lombard and Future Generali have shifted to in-house settlement of claims to improve efficiency and save cost.
 
 

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