Life insurance premiums are likely to increase in 2022 as sizable reinsurance businesses are likely to raise charges.
Premiums are expected to rise by 20% to 40% as reinsurers attempt to cover rising losses owing to rising claims.
Many companies have already applied to the Insurance Regulatory and Development Authority of India (IRDAI) seeking permission to hike charges while some are negotiating with global reinsurers to minimise the hikes, Economic Times reported.
The increase in premiums is expected to affect both online and offline policies, and it will be the first time in the last six years that the online insurance marketplace will see a mash.
“The price increase has been talked about for six months and now looks inevitable. Higher claims due to Covid have hit reinsurers as a result of which prices have increased. We have already filed for an increase with the IRDAI on some plans and depending on the products the increase has either been implemented or to be shortly implemented,” ET quoted Vighnesh Shahane, CEO, Ageas Federal Life Insurance as saying.