Claims frequency has also risen by 15%, adding to the insurance cost.
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“For every 100 policies, claims have risen from seven to eight resulting in a 15% spike in frequency. This is compounded by inflated hospital bills and the growing burden of chronic diseases,” said a senior industry executive.
Changes by the Insurance Regulatory and Development Authority of India (IRDAI), such as shorter waiting periods for pre-existing conditions, reduced from four to three years, are making health insurance more accessible but straining the finances of insurance companies.
Also read: #25 For 2025: Can RBI’s upcoming policy steps help those who yearn for a place they can call their own?Efforts like the National Health Claims Exchange (NHCX) for better exchange of information between hospitals and insurers have yet to yield significant results. Also, the lack of standardised billing practices continues to impact insurance companies’ ability to manage costs effectively.Despite cost-control measures, premiums will likely keep rising. “Inflation in claims alone will account for at least 10% in 2025,” a senior executive noted. A high GST of 18% on premiums remains a persistent challenge for the industry.
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