Technoglitch
Core Member
The committee was constituted in December 2014 under M. Ramaprasad, member, non-life, Insurance Regulatory and Development Authority of India (Irdai) to examine health insurance framework.
Its report, published by Irdai on 22 May, has given many recommendations, including entry age-based pricing (To all stakeholders).
This would mean that a first-time buyer of health insurance would be charged more than a person of the same age who bought health insurance earlier and is only renewing the policy. “This can significantly impact penetration at the market level, and create a structural pull for persistency,” noted the report.
“Currently, the premium for the same age is the same irrespective of when you buy it. The only incentive for staying longer in the policy is the no-claim bonus; but there is no premium discount. With entry age-based pricing, people will not only be encouraged to buy health insurance at a young age but will also stick to policies,” said Sanjay Datta, chief-underwriting and claims, ICICI Lombard General Insurance Co. Ltd, who was consulted on the report.
But the flip side could be even higher premiums for those in higher age brackets.
New buyers of health plans may pay more - Livemint
Its report, published by Irdai on 22 May, has given many recommendations, including entry age-based pricing (To all stakeholders).
This would mean that a first-time buyer of health insurance would be charged more than a person of the same age who bought health insurance earlier and is only renewing the policy. “This can significantly impact penetration at the market level, and create a structural pull for persistency,” noted the report.
“Currently, the premium for the same age is the same irrespective of when you buy it. The only incentive for staying longer in the policy is the no-claim bonus; but there is no premium discount. With entry age-based pricing, people will not only be encouraged to buy health insurance at a young age but will also stick to policies,” said Sanjay Datta, chief-underwriting and claims, ICICI Lombard General Insurance Co. Ltd, who was consulted on the report.
But the flip side could be even higher premiums for those in higher age brackets.
New buyers of health plans may pay more - Livemint
