Term insurance premiums expected to rise

Term insurance premiums in India are likely to rise due to increasing pressure from the reinsurance sector.

Mr M R Kumar, chairman of the country's biggest life insurer, LIC, said that the IRDAI is holding deliberations on this and would provide details in the next two to three weeks, reported LiveMint.

According to Policybazaar, term plan rates in India over the last decade have fallen gradually. Average term plan premium rates are about 30% higher in most developed countries.

LIC, known to offer relatively expensive term policies, has reduced its term plan prices as well in the last couple of years.

"The current term plan costs in India are quite low and with increasing pressure, reinsurers will most likely raise their price, in turn impacting premium rates," said Mr Santosh Agarwal, chief business officer-life insurance, at Policybazaar.com.

Source: Asia Insurance Review