Insurers have seen a surge in claims recently, driven primarily by hospitalizations, critical illnesses, and an increase in monsoon-related illnesses such as dengue fever and malaria. Consider this. ICICI Lombard Property & Casualty claims rate jumped to 82% in Q2 FY23 from 74% in the previous quarter. Similarly, Star Health Insurance’s claim rate increased from 67% to 68% in Q2 2023.
Claims for all insurers surged during Covid due to increased hospitalizations. However, it was expected to drop to pre-corona levels as cases began to decline. But insurers say not only elective surgeries, but also routine medical and critical cases have increased in frequency post-Corona.
This claim increase Health insurance What are the premium rates for 2023? “Retail health is a long-term portfolio. So we need to constantly monitor portfolio results from an empirical perspective. We need to make a significant price repricing,” said Gopal Balachandran, Chief Financial Officer and Chief Risk Officer, ICICI Lombard. ICICI Lombard’s last price revision came in the third quarter of 2021, raising his average premium by 8%.
Experts say claim rates were relatively stable in the first two quarters of 2022, but have increased sharply since September. This increase is due to a higher incidence of certain constellations of illnesses, especially planned surgeries and critical illnesses, leading to overall higher claim rates across the industry.
“Revisions to premiums are mainly associated with inflation in healthcare costs, which is a function of several factors such as rising costs, new advances in healthcare and technology. The ever-present presence in a growing economy will continue to impact health insurance, with all insurers regularly revising the prices of their respective products, resulting in higher premiums.But pandemics like Covid , has led to many changes in treatment protocols that have also impacted costs, and if these changes are permanent, these factors may also impact premiums in the long run. Insurers carry out pricing or re-pricing of insurance premiums based on the overall sustainability of premium rates in accordance with insurance regulations issued by IRDAI,” said Managing Director, ManipalCigna Health Insurance Company. Prasun Sikdar, Managing Director and Chief Executive Officer, said.
If the frequency of claims continues to increase, especially with fears of the next wave of Covid-19 looming, we can expect health insurance premiums to rise soon.
