Term Insurance Premium Hike: Last year, due to increase in claims due to second wave of Kovid-19, margins of insurance companies were being affected and due to this companies increased premiums.
Many life insurance companies have increased the premium of term insurance by 20-30%. Last year, due to the increase in claims due to the second wave of Kovid-19, the margins of insurance companies were being affected and due to this companies increased premiums.
The cases of COVID-19 are once again seeing a spurt. However, not much is known about the effect of the third wave. In such a situation, life insurance companies are working on the strategy of ‘wait and watch’ before increasing the premium rate.
Rates have increased so much
, Rushabh Gandhi, Deputy CEO, IndiaFirst Life, said, “Looking at the mortality rate of the last few years, insurance companies increased their premiums by 30 percent last year. Due to this, almost all life insurance companies have increased the rate by almost all.
There has been an increase of 20%. The third wave has not yet seen the same mortality rate as the previous two. The mortality rate through vaccination in eligible populations is still not very high.
The third wave is yet to be studied. Life insurance companies are working on a wait and watch approach.
