Term insurance premium set to rise by 25-30% after Munich Re hikes rates

Reinsurance rates hiked by upto 40%; Premiums may increase by 30%

Term insurance policy premiums are set to rise by 25 to 30 per cent with Munich Re, the largest reinsurer for the Indian insurance market, increasing its rates for underwriting portfolios of pure protection plans by up to 40 per cent.

According to a senior executive of a private life insurance company, the global reinsurer has communicated its decision about increasing rates. About 8-10 insurance companies have been informed about the move, sources said. The new rates will come into effect from December.

“The reinsurer has increased its rates for term policies by 30 to 40 per cent across various companies. This