New Delhi. The amount of your Life Insurance Premium can increase from the next year i.e. 2022. According to a report, reinsurance companies are going to increase their fees from next year, which can be burdened by life insurance companies on their customers.
Explain that reinsurance is a way of insurance for life insurance companies. Life insurance companies pay a fee to reinsurance companies to cover their various types of risks. By increasing the amount of premium (health insurance premium), the profits of insurance companies can also increase. However, this may reduce the demand for the policy. Especially at a time when there was increasing awareness about insurance products.
Premium will increase by up to 40%
It is reported that the amount of insurance premium can increase between 20 to 40 percent. This is because reinsurance companies have been getting more number of insurance claims for some time, due to which their losses have increased. In such a situation, now they are going to increase their fee to cover this loss.
Several companies have already sought permission from the Insurance Regulatory and Development Authority of India (IRDAI) to increase the fee. At the same time, some companies are in talks with global reinsurance companies to keep the hike to a minimum. The hike in premium may impact the sale of the policy both offline and online.
What do experts say?
According to the expert, “There was talk of increasing the prices for the last 6 months and now it cannot be avoided. Insurance claims have increased for some time due to Corona, due to which reinsurance companies have suffered losses and now they are increasing their charges. The CEO of a life insurance company confirmed that he has applied to IRDAI to increase the premium amount and the same will be implemented on insurance products soon.
