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Health Insurance Price Index

Analysis and Insights from Pricing of Health Insurance
from leading insurance companies in India.

Broader Vision

In the 1st quarter of 2024, Health Insurance Price Index has demonstrated a slight increase of 0.36% in the price of health insurance premiums as compared to the quarter 4 of 2023. On observing the 1st quarter of 2024 and 2023, there is a significant surge of 5.54%. This increase is at par with the medical inflation rate which usually is higher than the overall increase in inflation.

Comprehensive Perspective
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Premium Prices Variation - Segment

The health insurance premium rates from the top 5 health insurance providers in India show that an individual of age 26, who opted for a sum insured of 5 lakhs and an individual health plan paid an annual premium of INR 9,499. Simultaneously, someone with the same conditions who opted for a 10 lakhs sum insured paid an annual premium of INR 12,167. On the other hand, when considered a family floater policy, the average premium for a 26 year old with a chosen sum insured of 5 lakhs was INR 15,763 and for 10 lakhs was INR 20,175.

These premium prices demonstrate that the health insurance premiums do not increase proportionately with the sum insured. For example, choosing a sum insured of 10 lakhs over 5 lakhs increased the premiums with 27.98% whereas the sum insured was straightaway doubled. This highlights that the increase in premium is not directly proportional to the increase of sum insured significantly and therefore, the individuals who seek health insurance can opt for a higher sum insured if there is not a significant change in the premiums. This will increase the coverage at nominal costs.

Age Sum Insured 1A 2A 2A+1C 2A+2C Average Premium
26 5L 9499 14311 17730 21514 15763
10L 12167 18491 22712 27329 20175
36 5L 11349 16467 20002 23615 17858
10L 14491 21137 25487 29903 22754
46 5L 16634 23960 28090 32190 25219
10L 21328 30764 35893 40986 32243
56 5L 27944 42038 47229 52398 42402
10L 35718 53866 60306 66510 54100
Avg Premium 18641 27629 32181 36806 28814

*Source: Average prices in the above tabular data are determined by the leading 5 health insurance companies in India. These prices are for illustration purposes only. Actual prices may vary from insurer to insurer

Average Premium Prices - Age

Average Premium Prices - Age

The average premium payable by individuals in the 26-year-old category was INR 17,969, for the 36-year-old category INR 20,306, for the 46-year-old category INR 28,731, and for the 56-year-old category it was INR 48,251.

Unlike term insurance, the person entering a health plan is not insulated by the premium increase that happens due to age or premium inflation. However, entering a health plan at an early age makes sense due to the fact that the chances of getting coverage increase, and you can accumulate various continuity benefits like an increase in sum assured, premium discounts, restoration benefits, etc.

Average Premium Prices - Age
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Premium Prices- Coverage

Premium Prices- Coverage

Premium Prices- Coverage

As you add your family members to your health plan, the premium prices may vary. A family floater plan lets you add your spouse and children under the same plan without a big surge in the premiums. This is well demonstrated in the quarter 1 of 2024 as we see that for a 36-year-old adult, the premium was INR 11,349. But if you add another adult of the same age, the premium goes up to INR 16,467. And if you add a child as well, it becomes INR 20,002 for two adults and one child, all in the same age category, with a sum insured of 5 lakhs.

Family floater plans tend to be more cost-effective. When you add another adult of the same age, the premium increases by an average of 45.10%. However, if you add a child, the increase is only about 21.47%. Keeping this at the forefront, covering the entire family under a single policy through a family floater plan can prove to be easy on the pocket.

Index Computation Methodology

The prices & charts displayed above are based on the average premium prices of 5 health insurance companies in India. We have selected five private health insurance companies in terms of their GWP earned as per the data available on their website. (Star Health and Allied Insurance Co. Ltd, ICICI Lombard General Insurance Co. Ltd, Bajaj Allianz General Insurance Co. Ltd, HDFC ERGO General Insurance Co. Ltd & Care Health Insurance Co. Ltd.)

The prices represent the annual premium for each sample customer pertaining to age, coverage type & sum insured in Q1, 2024 (April 24 - June 24). The Insurer's individual rate may vary depending on age, coverage type, health profile, sum insured & add-on riders.

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