The health insurance policy that you have taken from your bank, office or other organisation may no longer be affordable as Subhash Chandra Khuntia, Chairman, Insurance Regulatory and Development Authority of India (IRDAI) has indicated that the loss ratio in Group Health Insurance is currently at an unsustainable level.
While praising insurance brokers for procuring about 43% of the Group Health Insurance business, at the 16th Annual Insurance Brokers Summit 2020, the IRDAI Chairman also cautioned the insurance industry stakeholders of making the segment unsustainable by offering the group health cover at throwaway prices due to cutthroat competition among the insurance providers and intermediaries.
The IRDAI Chairman also assured that the regulator would be happy to help the stakeholders of the Insurance Industry in minimising risks and for that wellness should be addressed along with health insurance, so that the requirement of hospitalisation comes down.
Although the IRDAI Chairman said that he wants that the Loss Prevention Association be revived and work with clients to reduce risks, but it is clear that the premium of Group Health Insurance or of any other insurance can’t be kept at unsustainable level to create existential issue for the Insurance Industry.
So, with the increase in the cost of providing the group health cover, there are chances that either the free health cover given by your employer may be reduced, or the employer may start charging premium for providing health insurance cover.
Also, the gap between the rate of premium between personal health insurance cover and the group health cover may also get reduced.