COVID Plans In loss; Insurers Seek Re-pricing From Regulator
Insurance policies Corona Kavach and Corona Rakshak have turned out to be loss-making products for most insurers, prompting them to seek a re-pricing from the regulator as the high claims payouts are eating into their profits. “It has turned out that Corona Kavach and Corona Rakshak have been making losses for most of the insurers. All of us launched these products in July (last year). We are severely under-priced,” a top executive from a general insurance company said on condition of anonymity.
Based on data available till June this year, the official said, comparing the peak of the pandemic of other countries and of India, the country’s peak was higher. “Our second peak has been double of our own peak and higher than any other country in the world. And, I would be surprised if this product is making money for any of the insurers,” said the official.
The official said most of the insurers and the reinsurers have asked the Insurance Regulatory and Development Authority of India (IRDAI), for re-pricing of these two policies. However, the official said it would be difficult to suggest what kind of price revision they are seeking as it differs from company to company.
(PTI)
