covid: Insurers Seek Rate Hikes On Health As Covid Ebbs | mumbai news


Mumbai: Some non-life insurance companies, 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 Niva Bupa have applied to the regulator for revised products. Star Health, the largest standalone health insurer, 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.
Besides stability in claims in 2022 following the flattening of Covid claims, another uncertainty that had ended is the appointment of a new chief at the Insurance Regulatory and Development Authority — a post lying vacant since May 2021. Former finance secretary Debasish Panda took charge as the chairman of Irdai last month.
Panda will be meeting with the heads of life and non-life insurance companies in Mumbai on Wednesday and Thursday. The health insurance business is expected to come up for discussion in their meetings.
Public sector insurance companies that have a large chunk of the health insurance business have been running underwriting losses on their health portfolio.


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