Recent increases in insurance rates in India are mostly attributable to rising medical costs and a rise in the frequency of claims. In order to reduce costs and increase affordability, insurers are adjusting by introducing new plans and utilizing technology.
In India, the cost of insurance has been gradually increasing. The average premium rise over the last three years has been in the range of 25% to 30%. This increase occurs in spite of a greater understanding of the value of insurance during the COVID-19 epidemic.
Some customers have been deterred from obtaining new insurance policies or extending their current ones due to the rising premiums. Significant participants in the market, including as Star Health, Niva Bupa, HDFC Ergo, and New India Assurance, have all declared increases in their premiums.
