Health insurance premiums on the rise

Health insurance premium is set to rise this fiscal on the back of rising medical costs and high Covid-19 claims. While a number of insurers have already announced hikes in their retail health insurance products, others are expected to raise in the coming months.

“High Covid-19 claims have impacted many insurers in the last year. A few are looking at increasing the premium by 15 percent to 20 percent on retail health covers,” said an executive with a private sector non-life insurer. Insurers also point out that the rising medical inflation along with new protocol post the Covid 19 pandemic has added to costs.

“Premium increase is predominantly linked with medical inflation, which in turn is a function of several factors such as rising hospital costs, new advances in medical technology and treatment. These factors are ever-present in a growing economy like India where healthcare is advancing in a big way. The pandemic has also brought a multitude of changes in the treatment protocol, impacting the cost of claims,” said Prasun Sikdar, Managing Director and CEO, ManipalCigna Health Insurance.

The insurer has increased the premium by 14 percent on one of its products – ManipalCigna ProHealth. “We have increased prices after three years. This will ensure the overall portfolio is managed better,” Sikdar explained.