The regulator is planning massive changes in health insurance, which include more incentive for healthy policy holders and a level playing field for life and non-life insurers, among other.

 

On its recent draft on health insurance Irdai has said that, there could be higher solvency requirement for group health segment. This means, those operating heavily in this space would have to allocate higher funds for this space. 

 

Earlier Irdai had said in its guidelines on pricing of risk that industry-wise loss cost should be considered for pricing a product. The regulator had said there should be an appropriate board-approved policy which should be closely monitored. 

 

The healthy policyholders are proposed to be incentivized with better rates once their health and fitness are monitored on a regular basis. Current norms do not allow pricing to be based on fitness levels since there has been apprehension about the availability of adequate data on the same. 

 

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