Price hike in term insurance plans may not impact demand: Experts

Despite the price rise, term plans are relatively cheaper in India than in the US or even Singapore, said experts

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Industry insiders believe if the prices do not increase, the supply side will shrink

Subrata Panda Mumbai
Although quite a few life insurers may have to increase prices for term plans due to reinsurers hardening their rates on the term portfolio, industry insiders believe this will not have a negative impact on the demand for such products. They believe the awareness around these offerings has increased manifold after the Covid-19 pandemic.

According to R M Vishakha, managing director and chief executive officer, IndiaFirst Life Insurance Company, “Term insurance rates in India have been low for some time. The claims outgo for life insurers has increased due to Covid. The uncertainty caused by the pandemic could have resulted in reinsurers hardening their rates.”

“We believe this is unlikely to impact the demand for such products in the market, given the

First Published: Feb 24 2021 | 06:10 AM IST

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