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Health insurance co's to hike policy rates to keep up with inflation

Health insurance co's to hike policy rates to keep up with inflation

A number of life and health insurance companies, who have not revised rates in the pandemic, are now looking to raise prices to keep up with inflation. 
The insurance regulator also allows insurance aggregators to revise prices within a certain period of time. 
That said, most companies did not raise the premium costs, in order to cater to the insurance needs of consumers during the pandemic. 

Covid has resulted in major business losses for the insurers, with a sharp rise in claim ratios, which had put these companies under a lot of pressure. 
Hence, insurance companies are now reviewing the hospitalization claims, and are considering on raising the premium rates. 

To add to it, in the wake of the emerging XE variant, claim ratios are expected to increase throughout the on going financial year.
According to insurance industry sources, insurance players, such as HDFC Ergo and Care Health have already received approvals for products with revised pricing. 
Niva Bupa has also applied to the regulator for revised products. 

Star Health, too, recently mentioned in their analyst call that they have taken an average hike of 15 per cent on their flagship health insurance policy from August 2021. 
As the higher claims of Covid have hit the insurers hard, they would have no choice, but to pass on the cost to consumers.
In the event of a price hike by insurers, the companies would need to raise premium costs between 20 and 40 per cent.