Know a price index for health and term insurance policies

Know a price index for health and term insurance policies

Online insurance marketplace PolicyX has started India’s first insurance price index that allows the users to observe shifts and trends in the premium prices. The index every quarter will track prices of health insurance and term insurance policies from leading insurance companies and present analysis and trends via data analytics.

According to Sameer Bansal, chief distribution officer at PNB MetLife India Insurance Co. Ltd, the index will help customers in choosing a policy that is suitable for their needs while delivering value for money.

The first story based on the index showed that the prices should remain stable in the last quarter for both health and term projects. The index will be updated every quarter.

The Term Insurance Price Index is defined based on the average premium prices of the top ten life insurance companies in terms of whole written premiums (GWP) as per the Insurance Regulatory and Development Authority of India’s (Irdai) November 2020 report. The 10 firms are Life Insurance Corporation of India, SBI Life, HDFC Life, ICICI Prudential, Max Life, Bajaj Allianz Life, Aditya Birla Sun Life, Kotak Mahindra Life, Tata AIA Life, and Canara HSBC OBC Life.

The index value continued unchanged at 20,995 for the December quarter, showing that the title insurance prices remained stable over the previous quarter.

“The normal price for a ₹50 lakh sum assured was ₹14,839 and for a ₹1 crore sum promised, it was ₹27,150. There was no difference for all the 10 insurance companies forming part of the index," the company announced in a release.

The price is taken as a model for four age bands—25 years, 35 years, 45 years, and 55 years, and both genders male and female. It also estimated premium prices for both smokers and non-smokers.

For the Health Insurance Price Index, PolicyX has germinated one public and five private health insurance companies in the duration of their gross written premium (GWP) earned as per Irdai’s annual report for 2018-19. The health coverage businesses in the index are—The New India Assurance, Star Health and Allied, ICICI Lombard General, Bajaj Allianz General, HDFC ERGO General, and Religare Health.

The index also remained steady sequentially at 24,026 in the December quarter.

“In the health insurance cost indexing, PolicyX was able to decide that at the time of obtaining the health insurance policy, the number of family members reported directly affects the premium prices. Moreover, an adult member does not develop the prices proportionately, highlighting the fact that family floater plans are more reasonable than buying two separate policies," the company announced.

According to Naval Goel, chief executive officer and founder, PolicyX, the company prepares to bring out interesting insights and data analytics through this report every quarter for the customers and industry participants.