The new financial year of 2022-23 has seen a sharp rise in renewals of insurance premiums across categories with group health policy costs rising by up to 40%and cyber coverage witnessing an 80-100 % jump.
Reinsurers led by GIC Re and general insurers led by New India Assurance have hiked their premiums by up to 20-30 per cent in certain segments – other than health and cyber — depending on the group and customers.
The recent developments in the Indian insurance industry, which is expected to reach Rs 2.25 trillion in 2021-22, indicate there have been large premium hikes in aviation, marine, group health and liability business including cyber cover, insurers said.
“We are putting our pricing approach on a more sound technical basis and have tried pricing correction wherever we feel it is warranted,’’ said Devesh Srivastava, CMD, GIC Re.
While the property line of business has seen some amount of stability in terms of pricing, the advantages have been largely neutralised by a cut-throat competition among the re-insurers to grab the huge SME business.