Health Insurance Renewal: As the demand for health insurance has increased rapidly after Covid-19, the rate of rejection of claims has also increased at the same pace. On the other hand, as the cost of treatment increases, the premium of health insurance is also increasing. Meanwhile, a report has come that 10 out of 100 consumers are not renewing their policies.
Everything is not going well in the health insurance sector. Earlier there was bad news about consumers and now there is no good information about the companies. A recent report on the health insurance sector says that a large number of consumers have not renewed their health insurance. Due to this, the premium collection of insurance companies has fallen significantly.
According to the report, the premium collection of health insurance companies has fallen by 10 percent in the current financial year. This means that 1 out of 10 customers has not renewed their insurance. A survey conducted by Policybazaar states that the premium collection of health insurance companies has decreased by 10 percent in the current financial year, but during the same time, a significant increase in the cost of premium is being seen.
Why are customers not renewing?
Policybazaar’s report states that the cost of health insurance has increased by 30%, due to which more than 10% of customers do not want to renew their insurance. Generally, insurance companies adjust their inflation every 3 years. In this, the increase is made according to the cost of treatment and the age of the consumer.
How much did the premium increase in 10 years
In the last 10 years, the rate of increase in health insurance premium has been 5 to 10 percent annually. This increase has happened for 52 percent policy holders. In this context, in the last 10 years, for more than half the people, the health premium of Rs 100 will increase from Rs 162 to Rs 259. Apart from this, for 38 percent of consumers, the health insurance premium has increased by 10 to 15 percent annually. This means that the premium of Rs 100 has increased to between Rs 259 to Rs 404 in a decade. Apart from this, there are 3 percent policy holders whose premium has increased by 15 to 30 percent annually.
Premium increased less than cost
Amit Chhabra, Chief Business Officer, General Insurance Department, Policybazaar, says that the inflation rate in the medical sector is 14% during this period, while the increase in premium in the health insurance sector has been less than this. 90% of policy renewals have happened at a premium increase of only 10% compared to last year.
This is also the reason for the decrease in renewal
Market experts say that the reason for the decrease in health insurance renewal is not just the increase in premium, but there is something else as well. Actually, recently there was news that health insurance companies have rejected about 50 percent of health insurance claims in the last 3 years. After this, doubts arose in the minds of customers about health insurance. They believe that despite buying an expensive policy, if the companies reject the claim when needed, then what is the benefit.
