5% face over 30% health premium hike in India

Half see an annual increase of less than 10% and continue renewing their policies.

Only 5% of health insurance customers in India face a renewal premium increase of more than 30%, primarily due to age-related factors, according to Policybazaar.

Whilst 10% receive renewal notices with a 30% hike, half of them manage the increase by switching to plans with better features, such as limited network coverage or deductibles.  

Most customers experience moderate premium inflation. About 53% see an annual increase of less than 10% and continue renewing their policies without major changes. 

A breakdown of premium growth shows that 52% of customers have a compound annual growth rate (CAGR) of 5% to 10%, whilst 38% fall within the 10% to 15% range. 

Only 5% experience a CAGR below 5%, and a small fraction—1% each—see premium hikes in the 15% to 20%, 20% to 25%, and 25% to 30% ranges.  

Despite rising medical costs, more policyholders are renewing their health insurance.

Renewal rates have risen by nearly 10% over the past two years, indicating sustained demand even as premiums increase.