The insurance industry has been facing difficulties in terms of claims as a result of COVID19, which is putting direct pressure on customers due to re-insurers’ increases in premium costs. According to insurance aggregator PolicyX.com, in the fourth quarter of 2021, the Term Insurance Price Index Value has gone up by 4.18%. The index value has reached Rs 23,929 during the quarter. The PolicyX.com report marks a huge difference of 9.75% in the term index value between the first quarter of 2021 and the fourth quarter.
In quarter 4, 2021, the average yearly premium for a sum assured of Rs 1 crore increased to Rs 30,720 from Rs 29,443 in the third quarter. According to PolicyX.com, out of 5 life insurance companies, as many as 3 companies have revised their premium prices wherein the biggest increase was 13.4% followed by 4.9%, and 0.9%. The remaining 2 companies kept their premiums constant.
