Non-covid claims rise as treatment cost jumps: Shreeraj Deshpande, Future Generali

The insurance industry witnessed a steep surge in health claims during the peak of the second wave of Covid 19. With the rise in claims policyholders also complaint about denial of cashless facilities and rejection of claims. Can this high claim ratio increase your health insurance premium rates? Has Covid changed the underwriting norms of insurers? In the video Shreeraj Deshpande, COO, Future Generali India Insurance told Money9 that the hospitalisation cost of non-covid claims has increased which can lead to an increase in premium rates.

“Claims in these three months surpassed what happened in the previous year. Now fortunately things are settling down. We are seeing that hospitalisations have reduced and also severity of the disease has reduced all over the country. However, post-covid we have suddenly seen that the cost of non-covid claims have started increasing, which means the hospitals have increased their general tariffs. We are seeing an increase in claims as claims outgo is much higher than the premium level. It is a double whammy for insurers who suffer because of Covid claims and non-covid claims. Claims outgo will be a stress on insurance companies.”

He also said that with an increase in the cost of claims the insurance companies will be forced to increase the premium rates over the period of time.