Insurers to hike group policy price

Mumbai
Nov. 5: If you are a beneficiary of a group health insurance policy, then be prepared for a 35 to 40 per cent hike in your premium.
Observing that the group health business is a loss making proposition, Mr Kimsoon Chua, the chief operating officer of Bharti Axa General Insurance Company, said: “In the past few months, the group health insurance policy premiums moved up by about 30 per cent, but still this segment is making losses. Prior to de-tariffing, the claim ratio was 160 per cent, now it has come down to 130 per cent but it is still not enough to stop the losses.”
To have a sustainable business proposition, insurance companies would be compelled to increase the premiums of group health insurance policies by more than 30 per cent, he added.
Mr Radhakrishna, the director of India Insure Risk Management and Insurance Broking Services, said: “During the first year of de-tariffing, the group health insurance premiums declin-ed due to the intense competition. In this period, some of the private general insurers gradually withdrew themselves from the group health insurance segment while the PSU general health insurers were competing with each other.”
But off late, the scenario is changing. Instead of competing with each other, the PSU general insurance companies have started hiking the premiums of group health insurance policies in the range of 10 to 20 per cent. The private general insurers are also looking to tap the segment at higher premiums.”
Going forward, he said the group heath insurance policy premiums would move upwards.
According to sources, some general insurance firms have already started cancelling the earlier group health insurance policies that were quoted for far lesser prices and they are negotiating for the higher premiums.