Increase in group insurance premiums as the amount of claims in Corona increases

Mumbai: The financial position of insurance companies has come under pressure as a result of the sharp rise in insurance claims due to the Corona epidemic in 2020. To alleviate this pressure, health insurance companies are increasing the premiums of group insurance. This increase is seen to be between 5 and 20 per cent.

Companies that have adopted a work-from-home policy will not see a significant increase in group insurance premiums because of the lower risk of illness for employees working from home. In comparison, group insurance premiums will be higher for companies operating in the field.

The epidemic of corona has also invited other ailments such as mental disorder, heart disease etc. The second wave of Corona has dealt a major blow to the profitability of health insurance companies.

Big companies as well as smaller ones are now offering group insurance for their employees to keep them financially equipped in the next wave of corona.

Corona is also increasing the demand for term insurance cover in the country. In April and May of the current year, term insurance sales increased by 20 per cent, insurance sources said. The demand for insurance is increasing from the second and third tier cities of the country.