PolicyX.com, one of India’s leading online insurance web aggregators, has launched the country’s first insurance price index which will allow users to have a transparent and better view of insurance prices by observing the shifts and trends in premium prices.
The index track prices of health insurance and term insurance plans from leading insurance companies in India and provides analysis and indicates trends through data analytics. The index will be updated on a quarterly basis.
The initial index report shows some interesting insights as follows:
The average term insurance premium increases exponentially with age. Average premiums for a 55-year-old is 85% higher than for a 45-year-old; likewise, premiums for a 45-year-old is 70% higher than for a 35-year-old while the premium for a 35-year-old is 45% higher than for a 25-year-old. The average premium is computed considering both male and female persons and also smokers and non-smokers.
The male insured risk is seen to be higher than that of females. The average cost of males insured is 21% higher than for females insured under a term plan.
Smoking contributes to a very critical part of the risk premium. On average, a smoker pays a premium which is 55% more compared to a non-smoker.
Term insurance prices had decreased substantially over the last few years in India but started increasing in 2020. However, the index data is collected starting the 4th quarter of 2020. A clearer picture of the trends will emerge once there are data for a few more quarters.
For health insurance, family floater plans are more economical than buying two separate policies. There is a small increase in premium in adding children to the policy.