Insurance brokers' advice to become crucial amid tighter underwriting norms

Low existing rates and revision of reinsurance premiums are key driver

The second round of hikes in term insurance premiums (after the one in April) has begun. HDFC Life, ICICI Prudential Life Insurance, and IndiaFirst Life Insurance Company are some of the insurers to have announced their hikes.

According to insurance brokers, the extent of hikes - which varies across insurers, age, and sum assured - ranges between 10 per cent and 30 per cent. Some insurers undertook hikes partly in April, the balance now. Besides hiking premium rates, some insurers have also tightened their underwriting norms. This will raise the entry barrier for customers.  

Brokers say insurers perceive higher risk in term