If you are receiving indications of an increase in your health insurance premiums, you are not alone. If you haven’t received it yet, it may be enough soon. Rising health inflation and rising settlements have forced industry players to raise health insurance premiums.
Of the individual health insurance owners surveyed by local circles earlier this year, 52% say their premiums have already increased by more than 25% over the past year. Of the 18,067 people who responded to the survey, 27% said they had an increase of 0-25% over the past year, while 14% of respondents said they did not increase. There was no clear answer to the balance.
According to Nikhil Jha, founder of Hercules Insurance Advisors, most companies plan to hike premiums in the coming months.
Key policies such as Niva Bupa’s Reassuring 2.0 have also increased premiums, with CARE Supreme Health Insurance or Star Health’s Family Health Optima Insurance Plan seeing an increase in premiums over the past year, Jha said. Some people, such as the Star, have seen rather sharp spikes in almost 60-70% of the songs, he added.
PolicyBazaar Chief Business Officer Amit Chhabra said it is a normal business while premiums are on the rise. After Covid, businesses must catch up and increase their premiums. So, we’ve seen a straight rise in premiums over the past few years, but it’s not that much on a CAGR basis.
Meanwhile, medical inflation is rising by around 15% per year, in addition to a growing number of health issues.
