Shares of life and general insurance companies are likely to remain in focus after reports suggested that the Insurance Regulatory and Development Authority of India (IRDAI) is considering measures to regulate health insurance premium hikes.
According to CNBC-TV18, sources indicate that IRDAI may cap premium increases both at the product level as well as at the overall portfolio level. The regulator is also exploring a proposal to link annual premium hikes with the prevailing rate of medical inflation.
Recently, IRDAI had capped premium hikes for senior citizen health policies at 10%, a move aimed at protecting vulnerable policyholders from sharp price escalations. Market participants now expect a wider consultation paper on premium regulation to be released soon.
Health insurance has become a significant growth driver for insurers. In FY25, health insurance accounted for nearly 40% of the total premium for the general insurance industry. For individual players, the segment’s contribution is also noteworthy — about 30% for ICICI Lombard, 50% for New India Assurance, and 14% for Go Digit.
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