Term Insurance Premiums Set to Stabilize After Surge

Following the jump in premiums of term insurance plans, rates are expected to moderate in the times ahead

- Teena Jain Kaushal

NOT TOO LONG ago, life insurers were grappling with high claim ratios amid rising Covid-19 fatalities. Not only the older population, but even young people were severely affected during the pandemic, throwing decades-old mortality estimates of life insurers under the bus. This had led to a sharp rise in the premium rates of term insurance plans.

However, now that life is returning to a semblance of normality post-Covid-19, claims ratios of life insurers have also started stabilising. Does this mean that term insurance premium rates will be stable in 2023?