Term insurance...

In addition, there was a rise in mortality rates due to the Covid-19 pandemic, particularly after the second wave.

The increase in reinsurance rates will be passed on to customers. The extent of premium hike will, however, vary from one insurer to another.

“Most insurance companies will have to pass on the rate hike. They will not be able to absorb a rate hike of 30-40 per cent. Some insurers may postpone it for a few months, but it will always come to customers, sooner or later,” said Naval Goel, founder and chief executive officer, Policyx.com – an online insurance aggregator.

How much of the reinsurance rate hike will be passed on by each insurer will depend on the quality of book, the claim ratio, etc.