Your health insurance premium might go up 10-15% in 2027
What's the story
Health insurance premiums in India are likely to increase by 10-15% over the next year, industry experts have said. The hike is expected as insurers adjust their pricing strategies to keep up with high medical inflation and changing risk profiles. The increases will be gradual and implemented at renewal cycles, but the trend is definitely upward.
Gradual adjustments
Premium hikes will vary based on several factors
Sarita Joshi, Head of Life & Health Insurance at Probus, said insurers are already revising premiums in a staggered manner. The changes will happen over the next 12-18 months. "Broadly, we are talking about 10-15%," she said. However, the exact increase will depend on factors like age, location, sum insured, and claims history. Senior citizens and those living in metros may see higher revisions.
Inflation impact
Medical inflation driving premium revisions
Medical inflation, estimated at 14-15% annually, is a key driver behind these premium revisions. Joshi attributed this to rising hospital charges, rising use of advanced treatments and diagnostics, and a structural increase in claims frequency post-pandemic. Arun Ramamurthy, Co-founder of Staywell. Health, also expects most policies to see similar increases over the next 6-12 months due to these factors.
Price impact
Individual health premiums have already risen by 23%
The impact of such trends is already visible in policy pricing. According to industry estimates, individual health premiums have risen by 23% between FY23 and FY25. The average cost of a family floater policy has also jumped from ₹15,000 in 2021 to over ₹22,000 in 2025, an increase of roughly 46%.
Market response
Insurers renegotiating hospital rates, focusing on preventive healthcare
Experts have warned that a sustained double-digit medical inflation poses long-term challenges for insurers and policyholders alike. In response, insurers are tightening underwriting, renegotiating hospital rates, and focusing more on preventive healthcare. Higher premiums are also starting to influence policyholder behavior with some people opting for lower sum insured or higher deductibles.