The general public will get a big blow! Health insurance will be expensive by 15 percent? What will affect your policy?
- Health insurance premium likely to increase by 10 to 15 percent
- That is why insurance companies are increasing rates
- Premiums may become more expensive
Health Insurance Rise Soon : With household budgets already strained, now comes a bad news from the insurance sector. Your health insurance i.e. health insurance premium is likely to increase by 10 to 15 percent in the coming time. Due to rising medical inflation and increase in hospital costs, insurance companies are considering taking this step. So it will affect the common people.
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That is why insurance companies are increasing the rates
Health insurance premiums in India are likely to increase by 10-15 percent in the next 12-18 months. According to a report by CNBC, industry experts say that medical expenses are rising rapidly and people’s health-related ailments are also changing, which is why insurance companies are increasing their rates. The increase will not be all at once, but will be phased in at the time of policy renewal, but overall, there is a clear upward trend in premiums.
Special hit to them
According to the report, Sarita Joshi, head of life and health insurance at Probus, says insurers have already started gradually increasing premiums and the increase will continue for the next 12-18 months. According to their estimates, this average increase could be 10-15% depending on age, city, sum insured and claims history. Senior citizens and those living in metros may be particularly affected.
10-15% increase in health insurance premiums
According to Siddharth Maury, Founder and Managing Director of Vibhvangal Anukulakara Private Limited, the 10-15% increase in health insurance premiums is the result of several factors such as rapidly increasing medical inflation, increased morbidity due to a growing geriatric population and post-Covid-19 return of medical demand to normal levels. This should be seen as a warning, he says, and instead of just opting for the cheapest plan, everyone should understand their true protection needs. In such cases, it may be wise to take a top-up or super top-up policy. Striking a balance between cost and sustainability will be a major challenge for insurance companies in the future.
Reasons for Increase in Health Insurance Premiums
Medical inflation is one of the biggest reasons for rising health insurance premiums. According to experts, this inflation has reached 14-15% annually, which is significantly higher than general inflation. Rising hospital costs, increasing use of new and expensive treatments, and an increase in claims following the pandemic have added to this pressure. Experts say this level of medical inflation is unlikely to last long, but unless medical costs continue to decline, premiums are almost certain to rise.
Medical inflation in India
The impact of rising medical costs is now clearly reflected in health insurance rates. According to industry statistics, personal health policy premiums have increased by approximately 23% between fiscal years 2023 and 2025. Meanwhile, the average cost of a family floater policy has increased from around Rs 15,000 in 2021 to over Rs 22,000 in 2025, representing an increase of approximately 46%. Experts also point out that the annual rate of medical inflation in India is around 14%, one of the highest rates in Asia.
The ever-increasing double-digit medical inflation is becoming a long-term concern for both insurance companies and policyholders. According to experts, if this trend continues, premiums may become more expensive and people may find it harder to afford health insurance.
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