India plans higher solvency requirement for health insurance players

June 19 2015 by InsuranceAsia News Staff

India’s insurance regulator, the Insurance Regulatory and Development Authority of India (IRDAI), announced plans to reform the country’s health insurance sector.

The plan includes imposing higher solvency requirements for the group health segment and giving more incentives for healthy policyholders.

The higher solvency requirement means that insurers operating heavily in the group segment will have to allocate higher funds for this space.

IRDAI is also planning to raise the solvency margin required to be maintained by insurers at all times from 150% up to 200% for group health.

The changes will also include incentives for healthy policyholders once their health and fitness are regularly monitored.

Insurers will also be required to reward customers who have maintained a good level of fitness with better insurance rates.