For some individual health insurance plans, Star Health and Allied Insurance will raise premiums; an increase of roughly 15% is projected. The insurance company increased the cost of its well-liked Family Health Optima (FHO) insurance plan by 25% in February.
Officials from the company explained that this surge in FHO was the only one since the pandemic started. They said that the products have not had a rate revision in a number of years and are presently being reviewed for a premium adjustment. Distributors claimed that Star Health was well-known for offering insurance products at cheap prices. The business is having trouble as a result of increasing claims ratios in lower-value plans brought on by rising medical costs. In an effort to improve underwriting margins, the company is realigning its growth strategy and focusing on new distribution channels.
"We use a risk-based pricing strategy and conduct regular assessments of every product. Anand Roy, the MD of the company, stated, "We may think about raising rates for a few additional items in the near future in addition to Family Health Optima.
