In India, only 5% of health insurance policyholders face a renewal premium increase of more than 30%, primarily due to age-related factors, according to Policybazaar.
While 10% of customers receive renewal notices with a 30% hike, half of them manage the increase by switching to plans that offer better features, such as limited network coverage or higher deductibles.
The majority of customers, however, experience moderate premium inflation. About 53% see an annual increase of less than 10% and continue renewing their policies without making significant changes.
A breakdown of premium growth shows that 52% of policyholders experience a compound annual growth rate (CAGR) of 5% to 10%, while 38% fall within the 10% to 15% range. Only 5% see a CAGR below 5%, with a small portion—1% each—experiencing hikes in the 15% to 20%, 20% to 25%, and 25% to 30% ranges.
Despite rising medical costs, health insurance renewal rates have increased by nearly 10% over the past two years, indicating sustained demand for coverage despite the premium hikes.
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