Group health policies see rise in premiums in renewal cycle

Group health insurance policies up for renewal in the current renewal cycle saw price correction, where insurers revised their premiums upwards. While in some cases premiums went up 15-18 percent, others saw a marginal increase of 5 percent, with the median increase being 10 percent, said insurers and brokers.

Medical inflation, losses incurred due to Covid claims, and inclusion of modern treatment have weighed on group health insurance premiums. The impact of Covid claims on prices has been somewhat lower this year, said insurers. This is in stark contrast to last year, when they factored in the Covid claims received in the underwriting and increased prices accordingly.

Insurers have paid Rs 25,000 crore of Covid-related health claims in the two years of the pandemic, according to the General Insurance Council (GIC). The incurred claims ratio of private sector general insurers and standalone health insurers jumped by over 5 percent and 10 percent, respectively, in 2020-21, compared to the year-ago period, illustrating the impact of Covid on health claims, revealed the data shared by the insurance regulator in its annual report.