HDFC Life Insurance, one of India’s largest private insurers, has announced a 10% increase in premiums for its term insurance policies.
This adjustment specifically applies to policyholders aged 60 and above, according to sources reported by CNBC-TV18.
Currently, 5% of HDFC Life’s Annual Premium Equivalent (APE) is derived from term insurance.
This hike specifically targets individuals above 60 years of age, according to sources from CNBC-TV18. Notably, term insurance contributes 5% to HDFC Life’s annual premium (APE).
ICICI Prudential Life Insurance Contemplates Increase
ICICI Prudential Life Insurance is reportedly considering a 3-5% increase in their term insurance premiums.
However, SBI Life Insurance and LIC are not currently planning similar adjustments.
Other Insurers Follow Suit
Several other insurers, including Bajaj Allianz Life Insurance and Tata AIA Life Insurance, have also raised their premium rates for term insurance policies:
Bajaj Allianz Life Insurance: Premiums increased by 1-5%.
Individual APE from term insurance constitutes 6%.
Tata AIA Life Insurance: Premiums increased by 3-10%.
Potential Future Changes
ICICI Prudential Life Insurance is reportedly considering a premium increase of 3-5% for term insurance policies.
However, SBI Life Insurance and LIC currently have no plans to adjust their term insurance premiums.
Reasons Behind Premium Adjustments
Sources attribute these premium adjustments to factors such as inflation, changes in risk profiles, and increased demand for term insurance in Tier II and Tier III cities.
Factors Driving Premium Increases
Sources attribute these premium hikes to factors such as inflation, changes in demographics, and the growing popularity of term insurance in Tier II
and Tier III cities. These developments are influencing pricing strategies across the term insurance portfolio.
