Term life insurance policy premiums may increase by 20-40% in the next 3-6 months, according to insurance aggregator Policybazaar.
In the past month, a few insurance companies have already increased the prices of term life insurance plans by 20%. For them, there will be another price rise of 20% within 3–6 months.
HDFC Life, ICICI Prudential Life, Max Life and Tata-AIA hiked their pure protection term insurance premium rates in April.
For insurance companies which have yet to increase their prices, there will be a total increase of 40%, according to a report by CNBCTV18 quoting Ms Santosh Agarwal, chief business officer, Life Insurance, at Policybazaar.
Mr Avdhesh Gupta, appointed actuary at Bajaj Allianz Life, said, “Over the last couple of years, the industry and the reinsurers have been experiencing mortalities higher than that assumed in the premium calculation, and the current level of premium rates have become unviable.”
Reinsurers had raised their rates earlier this year by up to 40%.