For starters, #lifeinsurance companies had a pretty rough year- they shelled out more in COVID-19 claims during the first quarter of 2021 than in the whole of 2020.
In fact, during the second wave of COVID, insurers saw life claims mounting by 5–10 times.
In fact, during the second wave of COVID, insurers saw life claims mounting by 5–10 times.
And this kind of stress isn’t good. Because insurance companies (much like people) can’t pay for all these expenses out of pocket. They need insurance too. And the people that insure them i.e. re-insurers are now contemplating drastic action.
They’re considering bumping up rates across the board. For instance, Munich Re — the largest reinsurer for the #Indian insurance market is planning to bump up rates by up to 40% for term plans.
And that means insurance companies will soon have to start paying higher premiums.
At which point, they’ll simply pass on the cost to you.
At which point, they’ll simply pass on the cost to you.
What’s worse? Some industry experts believe that the rate hikes were inevitable, despite the reinsurance conundrum.
Term insurance plans in India have been underpriced for quite some time now. And a price correction is probably on the cards either way.
Term insurance plans in India have been underpriced for quite some time now. And a price correction is probably on the cards either way.
So maybe it makes sense to consider buying a term insurance plan soon. And if you want some help on that front, book a free call with Ditto Insurance or text us on WhatsApp- bit.ly/3ADvAKf.
You’ll have the best insurance advisors at your fingertips. (n/n)
You’ll have the best insurance advisors at your fingertips. (n/n)
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