Health Insurance premium hike – Star Health and Allied Insurance has decided to increase the premium rates of 30 percent of its policies by 10 to 15 percent following the new rules of insurance regulator IRDAI. This move comes at a time when Star Health’s shares have fallen by 9 percent in the last one year.
Star Health Insurance, one of the largest health insurance providers in the country, has said that it will increase the premium rates of 30 percent of its policies by 10-15 percent. The company has said that the increased hospital expenses during Covid have not yet come down and after the insurance regulator IREDA reduced the waiting period for existing diseases, now the company has no choice but to increase the premium rates.
It is worth noting that the Insurance Regulatory and Development Authority of India (IRDAI) had made some regulatory amendments recently. These included reducing the waiting period for existing diseases. Insurance companies are busy following these amendments. Its effect can now be seen on the premium of your policy. It was believed that the health insurance premium would increase due to IREDA’s decision to reduce the waiting period from 4 years to 3 years. Now this apprehension has been proved right.
When will the increased premium be implemented?
Anand Roy, MD and CEO of Start Health, said during a recent analyst call, “We have already planned to increase the prices of some products. The price of one policy has already been increased and two more products will be launched in the next one month. He also said that the regulatory changes related to reducing the moratorium period and reducing the waiting period for existing diseases from four to three years will also have a long-term impact on pricing.
30% of policies will be affected.
Company’s COO Amitabh Jain said that the company is planning to increase the prices of more than 30% of the policies. The average price increase will be 10-15%. This price increase will increase the company’s total premium collection by about 4%. The proposed increase has come after the recent sharp increase in the rates of Family Health Optima Plan.
Shares fell 9 percent in one year
Star Health Insurance’s share has fallen 9 percent in the last one year. This share has fallen by about 3 percent in the last one month. In the last trading session, Star Health shares fell by about one percent and closed at Rs 573.60.
