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The Wire
15 hours ago
- Health
- The Wire
Individual Health Insurers Seek Largest Premium Hikes in Over Five Years
New Delhi [India], August 11: Indian consumers are witnessing significant changes in the individual health insurance and private medical insurance landscape. Over the last few months, many policyholders have reported steep rises in their health insurance premiums. According to official filings and market reports, individual health insurers are now seeking their largest premium hikes in over five years. This trend affects millions of families and individuals who rely on these products for financial security during medical emergencies. Factors leading to premium hikes Several reasons have led individual health insurers to revise rates. During the COVID-19 pandemic, insurance companies faced a sharp surge in claims related to hospitalisation and treatments under private medical insurance policies. In FY22-23, claims ratios for health insurers crossed 90%, up from averages of 60-70% in previous years. This means that for every Rs. 100 collected as premium, insurers paid Rs. 90 as claims, squeezing their profits. Rising medical costs are another key factor. According to the National Health Authority, medical inflation in India averaged 14% in 2022-23, one of the highest in Asia. Treatments, diagnostics, and even standard procedures in private hospitals have become expensive. Insurers adjust premiums upwards to keep pace with these higher payouts. India's Insurance Regulatory and Development Authority (IRDAI) reports that insurers have also enhanced coverage with new features such as coverage for mental health, modern treatments like robotic surgery, and day-care procedures. While these are valuable to policyholders, they increase claim outgo, adding pressure on premiums. Regulatory permission for premium increases Health insurers cannot increase premiums arbitrarily. They must file premium revision applications with the IRDAI, which closely examines the justification. In early 2024, at least 14 leading private and public sector insurers, including HDFC Ergo, ICICI Lombard, Star Health, and National Insurance, filed for hikes ranging from 15% to 35%, according to industry estimates and filings reviewed by Mint. For most individual health insurance and private medical insurance products, this is the sharpest rise since FY18, when premiums saw 10-14% increases. Major insurers argue that cumulative inflation and elevated claims from 2020 to 2023 require a correction in rates to maintain product viability. Which policies and consumers are affected the most Impact on individual health insurance policyholders The premium hikes have the greatest impact on individual health insurance customers. These are people who buy policies directly, rather than as part of an employer scheme or family floater. For example, a standard Rs. 5 lakh health cover from a leading private insurer, which was priced at Rs. 8,000 for a 30-year-old in 2019, will now cost between Rs. 10,000 and Rs. 11,000, after the approved hike. For senior citizens or those with pre-existing ailments, increases are even sharper, sometimes up to 25-30%. Group insurance plans see slower increases Corporates and organisations that buy group or employee policies have bargaining power and larger risk pools. Hence, while group policies also see some price increase, these are usually lower than those for individual retail buyers. However, experts warn that persistent medical inflation will eventually influence group premiums as well. How premium hikes affect affordability and healthcare access Increased out-of-pocket expenses With higher premiums, policyholders, especially from the middle class and self-employed segments, are forced to rethink medical cover. Some may reduce the sum insured, opt for policies with co-payment, or even drop coverage altogether. A study by the Insurance Brokers Association of India in early 2024 observed that up to 18% of individual health insurance policyholders considered downgrading or cancelling their policies following the hike announcements. Financial strain on families and vulnerable groups Health costs are among the largest unpredictable expenses for Indian families. A sudden increase in annual premiums by Rs. 2,000 to Rs. 5,000 can strain household budgets and lead to delayed renewals or lapses in cover. Senior citizens, who have higher medical needs, are particularly affected as they already pay the highest premiums in the market. This reduces access to private medical insurance, forcing dependence on limited and often overburdened public healthcare services. IRDAI's role and regulatory responses Ensuring consumer protection and industry viability The IRDAI is responsible for balancing the financial health of insurance companies with the well-being of policyholders. The regulator has sought detailed actuarial data and justifications for each premium increase. In numerous cases, IRDAI has moderated or staggered the hikes, asking insurers to spread out increases over two to three years to prevent sudden financial shock. Product standardisation and transparency IRDAI has also introduced guidelines to improve transparency in product features and pricing. Insurers must now clearly state the reason for premium increases in their policy renewal notices and offer comparison charts with other available products, helping consumers make informed decisions. To promote access, IRDAI encourages the launch of standardised products such as Arogya Sanjeevani and Saral Suraksha Bima, which provide basic cover at affordable rates. While these may not have all the bells and whistles of private medical insurance plans, they ensure minimum protection for a larger population base. Expert tips to manage rising individual health insurance costs Shop and compare policies every renewal cycle With premium hikes, loyalty to one insurer is no longer the best option. IRDAI's guidelines now allow portability, making it easy for consumers to switch between insurers while retaining continuity benefits. Always compare features and pricing on official platforms such as the IRDAI website or trusted aggregators before renewing your individual health insurance. Consider top-ups and super top-ups Instead of buying an expensive comprehensive plan, you can take a base cover and add a super top-up plan for higher coverage at a lower overall premium. For example, taking a Rs. 5 lakh base cover with a Rs. 20 lakh super top-up may cost less than buying a single Rs. 25 lakh policy. Many experts recommend this approach for middle-income families and self-employed professionals who need higher protection but want to keep annual outgo manageable. Opt for higher deductibles and co-payments If you are healthy and financially secure, choosing a higher deductible or voluntary co-pay option reduces your annual premium. However, this means you will pay a fixed amount from your pocket in the event of a claim. Carefully evaluate your risk appetite and medical history before choosing this route. Use wellness benefits and claim-free discounts Most individual health insurers now offer wellness programmes, discounts for claim-free years, or incentives for maintaining a healthy lifestyle. Actively use these features to reduce your premiums for private medical insurance. Simple steps like routine health check-ups, regular exercise, and non-smoking can have a tangible financial benefit. How to avoid policy lapses after premium hikes Plan for timely renewal Irrespective of premium increases, always renew your policy before the due date. Lapsed individual health insurance policies may result in a loss of waiting period benefits and continuity for pre-existing diseases. Many insurers offer a grace period of 15 to 30 days, but cover for claims is not available during lapses. Seek expert or a financial advisor help If you are unsure about the impact of premium hikes, consult a trusted insurance advisor or financial planner. They can analyse your current needs, suggest suitable individual health insurance products, and guide you on combining covers or switching options without losing protection. Conclusion: Proposed premium hikes in individual health insurance and private medical insurance represent the most substantial increases in over five years for Indian policyholders. While driven by rising healthcare costs, greater claim payouts, and market competition, they create affordability challenges for middle-class families and vulnerable groups. To navigate this evolving landscape, consumers should regularly compare policies, use top-ups creatively, and leverage IRDAI's consumer protection initiatives. Reviewing your health coverage priorities, seeking expert advice, and staying aware of regulatory updates will help manage the impact of premium increases without sacrificing protection. (Disclaimer: The above press release comes to you under an arrangement with PNN and PTI takes no editorial responsibility for the same.). PTI PWR
News18
15 hours ago
- Health
- News18
Individual Health Insurers Seek Largest Premium Hikes in Over Five Years
New Delhi [India], August 11: Indian consumers are witnessing significant changes in the individual health insurance and private medical insurance landscape. Over the last few months, many policyholders have reported steep rises in their health insurance premiums. According to official filings and market reports, individual health insurers are now seeking their largest premium hikes in over five years. This trend affects millions of families and individuals who rely on these products for financial security during medical emergencies. Factors leading to premium hikes Several reasons have led individual health insurers to revise rates. During the COVID-19 pandemic, insurance companies faced a sharp surge in claims related to hospitalisation and treatments under private medical insurance policies. In FY22-23, claims ratios for health insurers crossed 90%, up from averages of 60-70% in previous years. This means that for every Rs. 100 collected as premium, insurers paid Rs. 90 as claims, squeezing their profits. Rising medical costs are another key factor. According to the National Health Authority, medical inflation in India averaged 14% in 2022-23, one of the highest in Asia. Treatments, diagnostics, and even standard procedures in private hospitals have become expensive. Insurers adjust premiums upwards to keep pace with these higher payouts. India's Insurance Regulatory and Development Authority (IRDAI) reports that insurers have also enhanced coverage with new features such as coverage for mental health, modern treatments like robotic surgery, and day-care procedures. While these are valuable to policyholders, they increase claim outgo, adding pressure on premiums. For most individual health insurance and private medical insurance products, this is the sharpest rise since FY18, when premiums saw 10-14% increases. Major insurers argue that cumulative inflation and elevated claims from 2020 to 2023 require a correction in rates to maintain product viability. Which policies and consumers are affected the most Impact on individual health insurance policyholders The premium hikes have the greatest impact on individual health insurance customers. These are people who buy policies directly, rather than as part of an employer scheme or family floater. For example, a standard Rs. 5 lakh health cover from a leading private insurer, which was priced at Rs. 8,000 for a 30-year-old in 2019, will now cost between Rs. 10,000 and Rs. 11,000, after the approved hike. For senior citizens or those with pre-existing ailments, increases are even sharper, sometimes up to 25-30%. Group insurance plans see slower increases Corporates and organisations that buy group or employee policies have bargaining power and larger risk pools. Hence, while group policies also see some price increase, these are usually lower than those for individual retail buyers. However, experts warn that persistent medical inflation will eventually influence group premiums as well. How premium hikes affect affordability and healthcare access Increased out-of-pocket expenses With higher premiums, policyholders, especially from the middle class and self-employed segments, are forced to rethink medical cover. Some may reduce the sum insured, opt for policies with co-payment, or even drop coverage altogether. A study by the Insurance Brokers Association of India in early 2024 observed that up to 18% of individual health insurance policyholders considered downgrading or cancelling their policies following the hike announcements. Financial strain on families and vulnerable groups Health costs are among the largest unpredictable expenses for Indian families. A sudden increase in annual premiums by Rs. 2,000 to Rs. 5,000 can strain household budgets and lead to delayed renewals or lapses in cover. Senior citizens, who have higher medical needs, are particularly affected as they already pay the highest premiums in the market. This reduces access to private medical insurance, forcing dependence on limited and often overburdened public healthcare services. IRDAI's role and regulatory responses Ensuring consumer protection and industry viability The IRDAI is responsible for balancing the financial health of insurance companies with the well-being of policyholders. The regulator has sought detailed actuarial data and justifications for each premium increase. In numerous cases, IRDAI has moderated or staggered the hikes, asking insurers to spread out increases over two to three years to prevent sudden financial shock. Product standardisation and transparency IRDAI has also introduced guidelines to improve transparency in product features and pricing. Insurers must now clearly state the reason for premium increases in their policy renewal notices and offer comparison charts with other available products, helping consumers make informed decisions. To promote access, IRDAI encourages the launch of standardised products such as Arogya Sanjeevani and Saral Suraksha Bima, which provide basic cover at affordable rates. While these may not have all the bells and whistles of private medical insurance plans, they ensure minimum protection for a larger population base. Expert tips to manage rising individual health insurance costs Shop and compare policies every renewal cycle With premium hikes, loyalty to one insurer is no longer the best option. IRDAI's guidelines now allow portability, making it easy for consumers to switch between insurers while retaining continuity benefits. Always compare features and pricing on official platforms such as the IRDAI website or trusted aggregators before renewing your individual health insurance. Consider top-ups and super top-ups Instead of buying an expensive comprehensive plan, you can take a base cover and add a super top-up plan for higher coverage at a lower overall premium. For example, taking a Rs. 5 lakh base cover with a Rs. 20 lakh super top-up may cost less than buying a single Rs. 25 lakh policy. Many experts recommend this approach for middle-income families and self-employed professionals who need higher protection but want to keep annual outgo manageable. Opt for higher deductibles and co-payments If you are healthy and financially secure, choosing a higher deductible or voluntary co-pay option reduces your annual premium. However, this means you will pay a fixed amount from your pocket in the event of a claim. Carefully evaluate your risk appetite and medical history before choosing this route. Use wellness benefits and claim-free discounts Most individual health insurers now offer wellness programmes, discounts for claim-free years, or incentives for maintaining a healthy lifestyle. Actively use these features to reduce your premiums for private medical insurance. Simple steps like routine health check-ups, regular exercise, and non-smoking can have a tangible financial benefit. How to avoid policy lapses after premium hikes Plan for timely renewal Irrespective of premium increases, always renew your policy before the due date. Lapsed individual health insurance policies may result in a loss of waiting period benefits and continuity for pre-existing diseases. Many insurers offer a grace period of 15 to 30 days, but cover for claims is not available during lapses. Seek expert or a financial advisor help If you are unsure about the impact of premium hikes, consult a trusted insurance advisor or financial planner. They can analyse your current needs, suggest suitable individual health insurance products, and guide you on combining covers or switching options without losing protection. Conclusion: Proposed premium hikes in individual health insurance and private medical insurance represent the most substantial increases in over five years for Indian policyholders. While driven by rising healthcare costs, greater claim payouts, and market competition, they create affordability challenges for middle-class families and vulnerable groups. top videos View all To navigate this evolving landscape, consumers should regularly compare policies, use top-ups creatively, and leverage IRDAI's consumer protection initiatives. Reviewing your health coverage priorities, seeking expert advice, and staying aware of regulatory updates will help manage the impact of premium increases without sacrificing protection. (Disclaimer: The above press release comes to you under an arrangement with PNN and PTI takes no editorial responsibility for the same.). PTI PWR (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: August 11, 2025, 18:15 IST News agency-feeds Individual Health Insurers Seek Largest Premium Hikes in Over Five Years Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Mint
23-06-2025
- Politics
- Mint
Is war risk covered by life insurance? It's never too late to check the policy's fine print
As the Iran–Israel war unfolds, it brings with it anxiety, headlines and human loss. For the world, it's a geopolitical crisis. But for thousands of Indian families, it's personal. There are an estimated 18,000 to 20,000 Indian nationals living in Israel, including students, skilled professionals and technical workers. In addition, over 85,000 Jews of Indian origin call Israel home, many of whom still have family in India, making this not just an international crisis but an emotional one for the Indian diaspora. One such tragedy struck recently. A young Indian engineer working in Tel Aviv was preparing to return home to Delhi. He had video-called his daughter and told her to finish her sign that read 'Welcome Home, Papa." The ticket was booked. The sweets were in the fridge. And then a missile struck. His name was among the casualties. Also Read: Healthcare for all: Don't rely on insurance alone The family's grief was instant, but what followed made it worse. When they reached out to the insurer, hoping for some support, they received a cold impersonal message: 'Claim denied under Clause XYZ—death due to war or war-like operations." There was no fraud. No error. Just a clause they had never paid attention to—one line buried in fine print that changed everything. The fine print could write your family's future: In most life insurance policies, death due to war or war-like situations is not covered for civilians. These exclusions are clearly outlined in the policy document, often under 'General Exclusions.' While some insurers offer optional riders or policies that include limited war-related cover, many do not. It is essential to understand what your policy excludes and not just what it promises. Unfortunately, many people skip this. According to the Insurance Regulatory and Development Authority's (IRDAI) 2024-25 annual report, one in four disputed life insurance claims were denied due to lack of awareness. These were not bad claims. They were uninformed ones. Also Read: Heath insurance in India ought to cover preventive care as well Insurance in India is stronger than ever but awareness must catch up: India's insurance ecosystem today is among the fastest evolving in the world thanks to IRDAI's progressive reforms. India reported a 98.6% claim settlement ratio in life insurance last year. It has introduced customer-friendly standard product structures, digitized initiatives like Bima Sugam and made disclosures and exclusions more transparent. The system is getting smarter, faster and more accessible. But one thing remains unchanged: policies only cover what they are broadly understood to cover. As the annual report highlighted, many disputed claims were denied not because of fraud but because families misunderstood what was covered. The rise of AI and disappearance of dialogue: Insurers today use artificial intelligence (AI) to streamline claims. Over 70% of global insurers now rely on algorithms to pre-screen documents and flag inconsistencies. It saves time. It filters fraud. But it also removes context. An outdated address, an undisclosed travel history, a forgotten declaration from years ago: to a person, these are human oversights. To a machine, they are grounds for rejection. And often, families don't get to have a conversation. They get an automated message. Claim readiness is the new insurance: Insurance isn't a file to keep in a drawer. It's the only document your family may reach when they can't reach you. Being claim-ready means reading your policy thoroughly, especially the exclusions section; updating it when your life changes (job moves, international travel, new responsibilities); telling your family what to do and who to call; keeping both digital and physical copies safe and accessible; adding riders for special risks if your lifestyle or profession demands it. It's not paranoia. It's love translated into action. Also Read: Earthquake insurance: India's coverage is woefully inadequate Ask these questions before it's too late: Instead of just 'How much insurance do I need?,' start asking the following. Will this policy protect my family if I die while working abroad? What happens if I'm in a country marked as a conflict zone? Are there riders available for such risks? Is there a manual review if AI rejects a claim? Will my nominee know what steps to take? Sometimes, the difference between a denied claim and a fulfilled promise is just a single question asked in time. Insurance is not about death; it's about continuation: If you're in your thirties or forties with children and/or ageing parents, or are working internationally, insurance isn't optional. It's foundational. But more than having it, you need to understand it. Choose policies that reflect your real life. Review them every year—don't set and forget. Speak to an advisor who listens, not just sells. And always, always read what seems 'small' because fine print often writes the biggest stories. The final gift we leave behind: We cannot control when or how life ends. But we can control what remains. A sense of direction. A helping hand. A system that supports, not surprises. Insurance isn't a backup. It's a goodbye that says: 'I thought of everything—even this.' So take a moment today. Read your policy. Ask uncomfortable questions. Because your family deserves more than a promise. They deserve certainty, not confusion. Compassion, not clauses. And support that doesn't disappear when they need it most. The author is joint chairman and MD, BajajCapital.
Time of India
22-06-2025
- Time of India
Retired man loses 2.4cr to insurance cyber scam
Mumbai: A 65-year-old retired man from Shivaji Park was cheated online by fraudsters impersonating as officials of Insurance Regulatory and Development Authority (IRDA), NSDL, NPCI, and leading banks. Under the pretext of helping him recover his lapsed insurance policy, they duped him of Rs 2.36 crore. According to the police, a retired professional's ordeal began on Nov 5, 2024, when the man received a WhatsApp voice call from a man identifying himself as Dinesh Chaturvedi, an employee of IRDA. The caller claimed he could help recover premium amounts from seven of the victim's lapsed insurance policies. The caller also produced a company ID card which was fake. The complainant was then instructed to share his policy details via email after which he was told to pay Rs 49,606 as processing fee. Convinced that he would receive Rs 24.8 lakh refund, he transferred the money to a bank account shared by the scammers. Soon after, he was told to pay tax of Rs 6 lakh initially—which he paid. Over a period of time, he transferred Rs 2.36 crore to multiple bank accounts provided by the fraudsters. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Dermatologist: Just Add 1 Drop Of This Household Item To Any Dark Spot And Wait 3 Minutes Undo On May 19, 2025, after repeated follow-ups yielded no result and no refund was received, the complainant realised he had been duped. He contacted the national cyber crime helpline (1930) and filed multiple complaints to Central Cyber Cell police station. A formal complaint has been lodged against people involved in the cyber scam.
Mint
10-06-2025
- Automotive
- Mint
Behind ICICI Lombard's recent surge: What the headlines won't tell you
General insurance has caught investors' attention over the last few days. Reports indicate that the ministry of road transport and highways is considering an 18-25% hike in third-party motor insurance premiums. On cue, ICICI Lombard General Insurance, which claims 10.8% share of India's motor insurance market, surged 7% in a single day on Friday. Investor enthusiasm around the stock is not new. The stock has been outperforming over the last three years. While disappointing Q4 earnings had dampened sentiment in recent months, the latest development has breathed fresh life into the counter. Can this take the stock to new heights? Motor insurance is the mainstay For general insurers, automotive insurance constitutes a major chunk, around 30% of the business. About 60% of that is for insuring damages to third parties. Third-party insurance is compulsory according to the Motor Vehicles Act. The regulator has held premiums steady in the segment for the last four years. But with more vehicles on the road, claims and loss ratios have been on the rise. In the first half of FY25, the loss ratio for motor insurance stood at 124.8%, while that for the broader general insurance sector was much lower, at 113.2%. So, higher premiums promise to bring some much-needed relief to insurers. ICICI Lombard is a well-diversified multi-line insurer. But motor insurance constitutes 40% of its business, which is split equally between own damage and third-party damage. Health, travel, and personal accident insurance comprise the next largest segment at 29%, picking up pace over the last few years. Industry slowdown weighed on business The company has seen a robust 13.1% CAGR growth in its GDPI (gross direct premium income) over the last 17 years. In fact, FY23 and FY24 reported even faster expansion at 17-18%. But growth slowed down sharply to 8.3% in FY25. Q4 numbers were even worse, with weak investment income contributing to a 1.9% year-on-year decline in profit for the quarter. It is important to note, however, that this was an industry-wide phenomenon driven primarily by a slowdown in the sales of new vehicles during the year. With a muted 8% growth in the mainstay segment of motor insurance, the non-life insurance sector reported just 6.2% growth during the year. The new rules by the Insurance Regulatory and Development Authority (Irdai) mandating deferred accounting of long-term policies instead of billing them upfront also played a role. Adjusted for the new accounting norms, the industry reported 8.6% growth. Even as competition weighed on ICICI Lombard's group health insurance segment, it surpassed industry growth in other segments. The company's focused efforts on older vehicles and commercial vehicles, as well as its improved portfolio segmentation, have worked in its favour. Removing the impact of the new accounting norms, the company's GDPI outpaced the industry with 11% year-on-year growth. The lower loss ratio in motor insurance negated the rising losses in health and crop insurance. Overall loss ratio remained largely stable at 70.6% in FY25 versus 70.8% in FY24. Lower expense ratio continued the business' moderation in combined ratio (loss ratio + expense ratio) to 102.8%. Excluding the impact of catastrophic (CAT) losses, the ratio stood even lower at 102.4%. Its bottom line expanded by 30.7% to ₹2,508 crore during the year. Still, bogged down by the topline slowdown and brokerage downgrades, the counter corrected by as much as 4% following the earnings announcement. Also Read: United Spirits is on a high after RCB's IPL win, JP Morgan upgrade and UK FTA. Can it keep buzzing? Long-term industry prospects remain promising India is the fourth-largest non-life insurance market in Asia. But the premiums constitute only 1% of GDP, against a global average of 4%. Even compared to emerging economies, India's general insurance is underpenetrated. The total addressable market stands at $36 billion, and it has ample room for growth. Premiumization in automobiles and increasing EV adoption should support growth in motor insurance. Meanwhile, improving penetration in health, property and casualty insurance is expected to drive growth in these segments. Increasing penetration of digital insurance is also expected to push growth. Over the last three years, online motor insurance has seen much faster adoption in lower-tier cities. Against a 35% growth in online motor insurance in tier-1 cities, tier-2 and tier-3 cities have seen significantly higher growths at 70% and 110%, respectively. Also Read: These three large-cap stocks are trouncing the Sensex in 2025—so far Robust fundamentals ICICI Lombard is one of India's leading non-life insurers with 8.7% share of industry GDPI. While it commands barely 3% share of the health insurance segment, its expansive distribution through its promoter bank, 1.4 lakh individual agents and almost 1,000 virtual offices have helped it outpace the industry in other segments. It leads the property and casualty insurance segment with 13% share in fire insurance and 20% in marine insurance. It also has high double-digit shares of India's engineering and liability insurance segments. Since FY23, ICICI Lombard has outrun the industry with consistently superior fundamentals. The stock's outperformance over the last 3 years reflects this optimism. With a data analytics-driven approach, the company has been able to balance growth and risk management. Its focus on profitable growth through conservative underwriting has been bearing fruit. The combined ratio has improved over the years and is significantly ahead of the competition. Its reserves are also robust. Incurred but not reported (IBNR) utilization continued to improve during the year, indicating the robustness of reserves. The solvency ratio of 2.69x is comfortably ahead of the regulatory minimum of 1.5x and its peers. Also Read: Analysts and investors have soured on Asian Paints. Can it prove them wrong? Strong outlook despite risks Anticipating a sustained slowdown in auto sales, the non-life insurance industry is likely to continue in the slow lane over the next couple of years. ICICI Lombard faces an additional risk from its health insurance segment, which has lagged the industry amid intense competition. Any further pickup in competition, spike in claims, or drop in investment income can weigh on the business. But the stiff pricing competition faced lately from public insurers in retail-focused segments should abate over the next few years, as players gradually conform to the regulatory cap of 30% on expenses of management (EOM), including commissions and promotional expenses. The company also stands to benefit from investments made in recent years towards the expansion of products and distribution in its health insurance segment. Any relief on GST in health insurance can also benefit the company. It is targeting a double-digit growth in the segment. Over the longer term, industry tailwinds should help support growth, while increasing digital penetration can improve profitability. ICICI Lombard's focus on enhancing penetration in tier-3 and tier-4 cities can be expected to drive growth for the company. Meanwhile, its conservative underwriting should support margins. Management has guided for its combined ratio to continue down the glide path to around 101.5% by FY27. Its target price has been pegged at ₹2,200 apiece, valuing the business at 32 times its FY27 earnings. This reflects an upside of 8% over current levels. For more such analysis, read Profit Pulse. Ananya Roy is the founder ofCredibull Capital, a SEBI-registered investment adviser. Disclosure: The author does not hold shares of the companies discussed. The views expressed are for informational purposes only and should not be considered investment advice. Readers are encouraged to conduct their own research and consult a financial professional before making any investment decisions.
