Insurance Premium: In the health insurance sector, claims history is a crucial factor in assessing risk, calculating premiums, and making underwriting decisions. In India, where healthcare costs are escalating at an alarming rate, insurers heavily rely on policyholders’ claims history to predict future medical expenses. This reliance has become even more apparent in recent years, as we have witnessed a steady increase in health insurance premiums.
Rakesh Goyal, Director of Probus Insurance, says, “While I don’t foresee claims history having an immediate impact on premiums in the short term, its long-term effects are undeniable. Insurance companies have already begun adjusting premiums based on claims history, as evidenced by the premium hikes over the past three years.”
“It’s important to recognize that insurance companies are not the only parties responsible for delayed or unresolved claims. Over the past four years, hospitals have raised their charges by nearly 200 per cent, making it harder for insurers to settle claims promptly. The introduction of a health regulator is vital to address these challenges and enhance accountability across the industry,” he added.
