Some Non-life Insurers, which had not revised rates during the pandemic, have now sought a revision in pricing to keep up with medical inflation. The regulator allows insurers to revise prices once every three years to keep up with rising costs. However, many companies had waited for the volatility claims during the pandemic to settle down.
According to sources, HDFC Ergo and Care Health had received approval for products with revising pricing. A few others including NivaBupa have applied to the regulator for revised products. Star Health, had said in its analyst call in February that it has taken about an average hike of 15% on its flagship health insurance policy from August 2021. The new rates will apply to all policies purchased or renewed thereafter. Company officials also said that they were relooking at group health insurance policies. In the call, Star Health chairman V Jagannathan said that products are priced assuming a normal situation and one-time incidence cannot be a continuous incidence.