Health insurers bleed despite premium hikes
Loss ratios
at frontline Indian
health insurers
are continuing to look less flattering as
hospital bills and claims
, fuelled by an estimated 14% inflation in medical-related costs, overshadow multiple increases in coverage premiums. The pace of increases in claims has run ahead of double-digit premium enhancements across government, group, and retail health portfolios.
New India Assurance
saw its incurred claims ratio deteriorate to 109% in Q1 FY26, up from 106% a year ago. The state-owned insurer raised premiums, but the losses only deepened.
With a 10% cap on
premium hikes
for senior citizens and inflation at 14%, there is already a 4% gap, said Girija Subramanian, CMD, New India Assurance. Even after rate hikes, loss ratios have not improved and issue lies with service provider ecosystem, not underwriting, she told investors.
Explore courses from Top Institutes in
Please select course:
Select a Course Category
Artificial Intelligence
Data Science
Healthcare
others
PGDM
Data Analytics
Digital Marketing
Data Science
Degree
Technology
Others
Cybersecurity
Leadership
Finance
CXO
Project Management
Product Management
healthcare
Design Thinking
Operations Management
Public Policy
MBA
MCA
Management
Skills you'll gain:
Duration:
7 Months
S P Jain Institute of Management and Research
CERT-SPJIMR Exec Cert Prog in AI for Biz India
Starts on
undefined
Get Details
ICICI Lombard
reported a rise in the loss ratio in its retail health book from 72.5% to 74.3% in Q1. The insurer called it a Q1 phenomenon and expects to end the year in the loss ratio range of 65-70%. "There has been an increase in incidence," said Gopal Balachandran, CFO, ICICI Lombard.
"But even when we started the last year, the Q1 number was 72.5%...ended the year at 67.9%." Star Health's incurred claims ratio climbed to 68.5% from 66.9%, while its overall loss ratio worsened to 69.5% from 68.1%. The health segment continues to dominate general insurance, accounting for 40.2% of industry gross premium income.
"There is a catch as
medical inflation
is not uniform across the board," said Avinash Singh, senior research analyst, Emkay Global. "Each insurer faces a different inflation curve depending on its portfolio mix. PSUs, for example, have older policyholder cohorts in their retail book who require more tertiary care and this pushes their inflation-linked claims much higher than industry averages."
Live Events
Niva Bupa has seen loss ratio move up to 68% on retail book. "Broadly, our loss ratio has increased by around 300 basis points," said Krishnan Ramachandran, MD, Niva Bupa. "Key drivers are a shift in business mix-group health or B2B loss ratios are structurally higher than retail-and some uptick in retail losses."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
24 minutes ago
- Mint
10 Forex Prop Firms to Watch in 2025
2025 is shaping up to be a good year for prop trading. With traders shifting away from traditional brokers and toward firms that offer capital, freedom, and flexibility—prop firms seem to be the go-to platform for growth. Whether you're based in Asia, Middle East , or Europe, the right prop firm could potentially enhance your trading journey. Here's a quick look at 10 standout firms this year: FundedFirm – Known for fast payouts, high profit splits, Indian UPI support, and trader-friendly rules. The5%ers – Known for its tiered funding and flexible profit splits. FundingPips – Offers instant and two-step challenges with competitive drawdown structures. FTMO – One of the more established names with a reputation for consistency. Fidelcrest – High-profit targets but strong support and global reach. True Forex Funds – No time limit evaluations and clean user interface. BluFX – Subscription-based access to funded accounts. TopStepFX – Aimed more at futures traders but expanding offerings. E8 Funding – Fast-growing with a modern approach and clean challenge model. FundedNext – Known for global presence and flexible trading parameters. FundedFirm is a firm that is gaining attention in 2025. Drawing inspiration from global platforms like those listed on FXEmpire and ForexPropReviews, FundedFirm is known for its cutting-edge approach, payment integrations, and trader support. Grab Your Exclusive Discount – Start Your Journey with FundedFirm If you want to take your trading to the next level, FundedFirm is offering a limited-time discount to help new traders get started. Use coupon code: MINT5 to get an instant discount on your challenge fees. Whether you're aiming for your first funded account or scaling your next level, this is a good opportunity to step in with a potentially lower risk.. Click here to begin your challenge now and see why FundedFirm is a popular choice for traders in India. In India, traders are reporting positive experience with FundedFirm. From small towns to metros, first-time traders are able to clear evaluations at their own pace, thanks to no time pressure and unrestricted strategies. One corporate employee in Delhi shared how he was able to pass a $100K challenge in under 30 days while balancing a full-time job, attributing the success to weekend trading support and fast UPI withdrawals. In Mumbai, a full-time mom cleared her account in two attempts and received her first profit payout in 48 hours to her Indian bank account. What makes these stories powerful isn't just the numbers, it's the real-world fit. These stories highlight how the platform may be enabling professionals and students to trade without disrupting their lives.. Whether it's UPI access, 24/7 local support, or freedom from trading restrictions, traders are discovering that FundedFirm aims to be a supportive platform for trading in India You can begin your trading journey and word towards getting funded and trading on your own terms. With over 80 billion UPI transactions recorded in 2024 alone, India is becoming notable for its growth in the digital payment evolution. While many global prop firms may rely on methods like wire transfers or crypto-only options, FundedFirm is one of the first top-tier firms to enable UPI payouts directly to Indian bank accounts offering a convenient payment option for traders in India.. Fast Bank Withdrawals – Payments are generally processed within 24 hours via local Indian banks. – Payments are generally processed within 24 hours via local Indian banks. Profit Share – The profit share can start at 90% and may increase with consistent performance. – The profit share can start at 90% and may increase with consistent performance. Zero Commissions, Raw Spreads – Pay less to execute. Every pip counts, and FundedFirm can help you keep more. – Pay less to execute. Every pip counts, and FundedFirm can help you keep more. No Lot Size or Scaling Restrictions – Trade how you want whether it's high-volume scalping or swing positions. – Trade how you want whether it's high-volume scalping or swing positions. Unlimited Evaluation Time – There is no time limit to pass the evaluation. – There is no time limit to pass the evaluation. Supports News + Swing Trading – No blackout periods around NFP, CPI, or interest rate news. – No blackout periods around NFP, CPI, or interest rate news. Fully Indian Integrated – From dashboards that support INR to 24/7 India-based support. Special Deal: Use coupon code MINT5 for an exclusive discount on your FundedFirm challenge today. The trading landscape in 2025 shows that traders are no longer settling for firms that are rigid, outdated, or disconnected from their needs. Today's prop traders want flexibility, fairness, and fast access to capital and FundedFirm aims to deliver on all fronts. Whether you're a college student trading after hours, a full-time professional looking at charts on weekends, or a seasoned trader scaling up, FundedFirm is built with your trading style in mind. With features like UPI payouts, unlimited evaluation time, 100% profit share potential, and support tailored for Indian and international traders alike, it's a platform designed for trading evolution. If you're looking to align with a firm that grows with you, join FundedFirm now using code MINT5 and take the first step toward a potentially smarter, faster, and rewarding trading in 2025. Note to the Reader: This article is part of Mint's promotional consumer connect initiative and is independently created by the brand. Mint assumes no editorial responsibility for the content.
Economic Times
24 minutes ago
- Economic Times
ETMarkets PMS Talk: Indian equities fairly valued but need earnings boost, says Sanjay Chawla
Tired of too many ads? Remove Ads Thanks for taking the time out. With Washington's additional 25% levy—doubling U.S. tariffs on Indian goods to a punitive 50% - how are you reading into this for Indian Inc.? Tired of too many ads? Remove Ads Do you think with external headwinds the process of generating alpha will be more challenging? How are reading into June quarter results of India Inc.? Tired of too many ads? Remove Ads What is your call on valuations? We have some moderation from all-time highs but can we say that we are in the attractive zone? Foreign institutional investors have unleashed a brutal $4.17 billion selloff across five key sectors in July. FIIs turned net sellers to the tune of Rs 17,741 crore last month. Should Indian investors be cautious? Retail investors have played an important role in holding the market. But rising risk could pose a threat? From a retail perspective, do you agree that money could start moving towards fixed income space as volatility grips D-Street? Which sectors look attractive? In the latest edition of ETMarkets PMS Talk Sanjay Chawla , Chief Investment Officer – Equity at Baroda BNP Paribas Mutual Fund , shared his views on the current state of Indian equities , global headwinds, and sectoral he believes the markets are trading around their long-term averages, Chawla emphasised that a sustained earnings pickup will be crucial to justify downplayed the impact of recent U.S. tariff hikes on Indian exports, highlighting that the affected sectors form an insignificant part of the equity also touched upon the resilience of retail investors, the temporary nature of foreign portfolio outflows, and the potential in consumption and healthcare segments, even as geopolitical and macroeconomic uncertainties persist. Edited Excerpts –From a macro perspective, Indian exports to the US accounts less than almost half a percent of the GDP. Then there are certain sectors which are exempted. So the net-net impact would be even is of course assuming the most pessimistic scenario of exports coming to a complete standstill. That is not our base fact that most countries would have some tariffs would mean that India may not be economically at a disadvantageous the sectors which are likely to get impacted are not material part of equity Indices, the impact on the earnings is unlikely to be meaningful. However, the impact may be on a bottom-up basis and more from a sentiment by the trade negotiations with the other countries, I think the tariffs may settle down on a much lower are a couple of headwinds- trade barriers, global economic uncertainties, supply chain disruption, geo-political simmering at multiple locations. All these factors are leading to heightened of the factors are difficult to model in a traditional financial sense. As long as one stays focus on long term fundamental factors and usually ignores the 'noise' and manages the volatility, they would perhaps do date we have seen about 80% of the companies have reported their earnings. The PAT growth continues to be in single digit. While the earnings are aligned to expectations, the requisite run rate would be higher in coming quarters. It augurs well that festive seasons this time are well spread and come in earlier. It is expected that earnings may improve in the coming Indian markets are trading at long term averages. To make strong investment arguments at current valuations we need to see earnings improve from here so far have been in mid-single digits. Ground feedback from festive demand seems to be indicating a much better outlook. If that sustains and is reflected in earnings in coming quarters then current valuations may be have been overweight on India for a long time. Recent outflows may plausibly be on account of redemptions, or profit booking or alternative markets being cheaper and offering better potential the past also we have seen FPIs selling in the short term only to do a U turn once global factors this juncture, Indian markets tick almost all boxes from a global investor perspective: Good economic growth, stable currency, deficit under control, visible earnings growth and breath of investible opportunity can be assumed to be the global uncertainty the only factor against Indian investment is slower than historic earnings growth. Once that picks up we may see renewed interest by overseas is no denying the fact that retail investors have shown remarkable resilience and maturity and have been steadfast in their financial goals.I think they understand the difference between systematic risk (in terms of GDP, earnings and valuations) and unsystematic risk (global policy uncertainty and geopolitical tensions).They understand that eventually the domestic economy will do well leading to improved earnings. That is what they hope to capture by investing in Indian equity is very important to do your asset allocation and have the discipline to stick to the same to meet your financial goals. Risk appetite for equity investors is different from Fixed income investors. That is what is eventually reflected in potential recent tepid returns from equity markets is an outcome of heightened global uncertainty. Once the dust settles we should see earnings growth tracing the nominal sector, especially discretionary consumption, should see a pickup. First the personal tax cuts should increase the disposable income of the middle-class. Secondly, we usually see higher spending during festive. We hope to see the same trend Healthcare sector also offers interesting pockets of growth- Hospitals are expanding through brown field expansion, domestic demand is potentially stable. Opportunity in Contract Manufacturing (CMO) can be very is notwithstanding the potential tariff barriers. However, we suggest that investors should consult their financial advisor and according to their risk appetite consider the above sectors.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
Deccan Herald
24 minutes ago
- Deccan Herald
Could Silicon Valley's Indian CEOs get the Intel treatment?
The problem is a fear, both in Washington and in Silicon Valley, that the US and Chinese tech ecosystems are not complements but rivals. Indian tech leaders have managed to escape similar scrutiny precisely because the tech scene here is seen as providing low-end support to US industry, not high-value competition. But how long will that be true? And what happens if it changes?
