Insurers likely to further tighten underwriting norms for term plans

The source also added that retail term plan prices may go up further, even though the reinsurer has not specified it at this point in time

Come October, life insurers may have to tighten their underwriting standards further for retail term plans at the behest of one of the largest reinsurers in the Indian insurance market, Munich Re. 

According to a source aware of the development, “Munich Re has been studying long-term mortality trends for the past few years, and has suggested some tightening in the underwriting process.”

“As far as financial underwriting is concerned, the reinsurer has suggested that insurers should ask for additional documents. For example, apart from income proof, they can ask for bank statements of the prospective customer before issuing policies,” added