Nearly 60% of
companies in a recent survey by ICICI Lombard expected insurance premium
payments to rise 5 to 8% annually in the next 5 years.
Last year (2013),
premiums for health insurance increased by nearly 9 %, without any expansion in
health care benefits, the survey said. Other insurers have observed a similar
trend.
Renuka Kanvinde,
assistant VP, health insurance, Bajaj Allianz.'' “Premiums for employers' health insurance
policies have gone up by about 15% this year“
In the ICICI Lombard
survey , 49 % of respondents said the increase in treatment costs was their
main concern. While 31% of employers said the increase was due to factors such
as lifestyle changes, 20 % attributed it to the complexity of diseases and
treatments.
About 48% of employers
in the survey said that costs would need to rise for any widening of benefits.
This explains why employers have been curtailing benefits and introducing
restrictions in corporate health insurance over the past few years to contain
claims.
“Nearly 60% to 70% of
our corporate clients have introduced restrictions for their employees,“ said
Kanvinde.
Coverage for
dependent parents, in particular, has taken a hit.
“An increasing number
of corporates are asking employees to pay the premiums for parental coverage,“
said Mr. Segar Sampathkumar, general manager, New India Assurance.
However, cutting
benefits is not the only way to reduce costs, according to Sanjay Datta, chief,
underwriting and claims, at ICICI Lombard.
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