Major life insurance players such as HDFC Life, Max Life, Bajaj Alliance and Tata AIA have hiked prices of their term life cover portfolio, with remaining players likely to follow suit, it is learnt.
CNBC-TV18 reported on July 10 citing sources that the term insurance premium of major players has gone up by 10 percent, and different companies have undertaken it for varied age groups. Moneycontrol is yet to verify details of the story.
Key Players
HDFC Life has taken a 10 percent hike in term insurance premium for age group above 60 years. The entire term insurance business accounts for 5 percent of the individual Annualised Premium Equivalent (APE), so for the category of senior citizens, this component will be much smaller for HDFC Life.
Max Life has reportedly undertaken a 1-6% hike in term insurance premium across categories, so this will have a greater impact for company.
Tata AIA has undertaken a 3-10 percent hike in term insurance premium across age groups, CNBC-TV18 reported.
Among major players who have not raised the prices yet, it is learnt that ICICI Prudential Life could join in with a hike in premium in the range of 3-5 percent.
Trigger for Hike
Inflation adjustment, rising tier II and II coverage where the risk profiling is seen higher, along with higher reinsurance premiums are believed to be among the key reasons behind the hike in term insurance premium.
Q1FY25 has emerged as a good quarter for life insurers in terms of reported Annualised Premium Equivalents, with private life insurers showing a 23 percent growth in APE for April 2024.
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