Corporate health insurance is proving costly for insurers Health insurers increased premiums by 15-40% in 2009 but claims made have increased even more. Thus health insurance is proving a costly affair for the insurers.
The premium earned by the insurers is much less than the claims payable by them to the employees who have opted for the corporate health insurance in the banking and financial services industry. Likewise, 39% and 71% of employees in the information technology and IT enables services industry, respectively, have over 100% claims ratios (ratio between claims payable and premium earned).
In fact, this claim ratio is over 150% for 29% and 20% of employees in the ITES and manufacturing sector.
The spreading awareness of need for health insurance has made the individual and corporate sector indulge in securing the health care facilities for their family members and employees.
This upsurge was not deterred with the rise in premiums because people have understood the benefits and need for health care plans and in future it will continue to be in greater demand.
Health care plans are open-ended wide ranging covers which are proving costly for the insurers so they are charging higher premiums to make up losses.
Corporate insurance contributes to approximately 40-45% of the total health insurance portfolio. The overall claims ratio is around 116%.
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Tags: Corporate health plans, family health insurance, Group health plan, Indivudual health insurance