Health insurance premiums in India have seen a significant surge, with some policies experiencing a staggering 50% increase in just one year. Experts predict further hikes in the coming months, citing regulatory changes and industry trends as contributing factors.
A recent survey conducted by LocalCircles gathered insights from over 11,000 personal health insurance policyholders across 324 districts of India. The findings revealed that 52% of respondents reported a premium increase of over 25% in the last 12 months, with some seeing hikes of 50% or more.
Industry sources attribute the impending premium hikes to the Insurance Regulatory and Development Authority of India’s (Irdai) decision to revise norms, allowing insurers to steeply raise premiums in recent years. Additionally, changes in definitions of pre-existing conditions and moratorium periods in health insurance policies have led to increased scrutiny and higher costs for policyholders.
Despite efforts to streamline claims processing and improve customer experience, challenges persist. Nearly half of the respondents who filed health insurance claims in the last three years reported difficulties, ranging from delays to outright rejections.
The General Insurance Council (GI Council) reports a surge in health policy claims, with settlements totaling around Rs 75,000 crore involving over 2.5 crore cases in 2022–23. Efforts to streamline processes and expand cashless treatment options aim to enhance customer satisfaction and simplify the claims process.
As the industry grapples with rising premiums and evolving regulatory landscapes, stakeholders emphasize the importance of citizen-centric policies and efficient claims processing. With continued collaboration and innovation, the aim is to revolutionize the health insurance landscape and provide individuals with the confidence and support they need to secure their health needs.
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