COVID situation not sustainable for insurance sector: Max Bupa

A senior official of Max Bupa Health Insurance Company, the second wave of COVID-19 has put further pressure on insurance companies, and the firm may take a call on premium rates depending upon the evolving situation.

Meanwhile, an analyst said there could be premium increases of up to 25% in the sector if the Corona Virus cases rise more than expected. Bhabatosh Mishra, Director, Underwriting, Products and Claims, Max Bupa remarked that the medical inflation since the onset of the COVID-19 pandemic has been the highest the company has ever witnessed. He also said any changes in the premium amount of health insurance products are dependent on various factors.

“We have settled COVID claims of more than Rs. 150 crore with an average claims size of Rs. 1.45 lakh. The claim requests being raised to insurers due to the second wave of COVID-19 is bound to further impact the portfolio of insurance companies,” Mishra further added.

He also said that Max Bupa took a conscious decision not to increase premiums last year as the company did not want to burden its customers at a time when the pandemic had impacted most of the people financially.

Mishra stated, “We were adversely impacted even during the first wave. The second wave has been far more intense than the first one and claim ratios, which were already worse than planned, is under further strain… Whether or not and how much premium revision will be needed will depend on how the pandemic goes and how much can we absorb. One thing is for sure, the current trend is not sustainable.”