Kolkata: The Covid 19 pandemic has driven home the scare of debilitation and death into the masses like no other events on the past few decades. Since then the amount people spend on health insurance has gone up dramatically. Insurance-technology platform Turtlemint has come up with a report that says the health insurance sector in his country industry is going up so rapidly that the total sum assured has jumped by 240% over the past five years.
“The increasing preference for higher sum assured and comprehensive coverage highlights a growing consumer focus on financial preparedness for medical expenses,” a report by the Business Standard has said quoting the co-founder & chief executive officer of Turtlemint, Dhirendra Mahyavanshi. It is a reflection of a large number of existing health insurance consumers and new customers moving towards comprehensive health plans. The Turtlemint survey was based on as many as 17,914 responses. The survey was designed to decipher the impact of increase in health insurance premia on individuals.
Rs 2 trillion by 2028
The report from Turtlemint has also stated that the premium per policy has surged by a whopping 73% since 2020 in Tier 2 and Tier 3 cities. This mirrors the rising propensity of consumers to spend an extra buck in wider health coverage as they prioritise meeting medical exigencies. According to GlobalData, a data aggregator, the health insurance market in India is expected to reach Rs 2 trillion by the year 2028.
In some cities such as new Delhi, premia on health insurance can witness a rise, which experts are attributing to air pollution. According to reports, a 10-15% rise in premiums for new health insurance policies in the national capital can be effected after a rise in pollution-related claims last year.
Cumulative rise in health insurance premiums
The survey stated that 8% of the respondents revealed that they paid a 200% (or more) rise in annual health insurance premiums between 2021 and 2024. As many as 16% recorded 150% to 200% jump in the premiums they coughed up. About 13% suffered a rise of 100-150%. As much as 30% of policyholders had to bear with 50-100% rise in premiums.
Faced with a fast rise in healthcare costs, insurance regulatory body IRDAI has reined in steep premium increases for the elderly. Insurers have been restrained from raising premiums by more than 10% for senior citizens policyholders without approval.
Thanks to runaway medical inflation, more and more Indians are being forced to shell out a lot more to pay their medical insurance premiums. According to a report by insurtech platform Turtlemint, total sum assured has galloped 240% in the past five years. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
