Life insurance policies are likely to get more expensive and harder in the next fiscal year starting from April 2021. As increased comorbidity risks because of the pandemic and the adverse loss experiences of global reinsurers are set to weigh on how life covers are priced.
As per the industry experts, from the next month the premium on term covers is set to be raised at least 10-15 percent by most private sector insurance companies.
Currently, Tata AIA, Aegon Life, Max Life, PNB Metlife and IndiaFirst Life have already filed for new term products with the insurance regulator at increased prices for the new fiscal year. It is expected that other life insurers may soon follow.
Further, it has not been verified yet, whether state-owned Life Insurance Corporation of India (LIC) would also increase prices of protection products. However, Swiss Re, Tata AIA and Aegon Life didn’t respond to queries. Max Life and PNB Metlife declined to comment.
“Reinsurance contracts will set in from April 1,” said a person aware of the matter.