36 0 Medical inflation and health insurance products in India: Current practices and the way forward


Read the latest edition of AIR and MEIR as an Interactive e-book

Aug 2020

Medical inflation and health insurance products in India: Current practices and the way forward

Brought to you by:  Milliman

Medical inflation is a key driver of health insurance costs which in turn lead to premium increases. Health insurance companies are continuously looking for ways to manage medical inflation better to keep premiums competitive for customers and to mitigate lapses.

Despite adopting many initiatives on claims management, fraud management, provider networking and case management most insurers are still struggling with medical inflation, which generally far exceeds retail or consumer price inflation. This has become increasingly important with new players entering the market with more competitive pricing and wider product offerings.

In this recently released whitepaper, Milliman consultants Joanne Buckle and Rachin Aggarwal discuss the common definitions of medical inflation, factors driving medical inflation in the short and long terms, and current medical inflation trends in India. They also discuss the Insurance Regulatory and Development Authority of India (IRDAI) regulations on rate filing and restrictions on premium rate increases in the context of how companies are currently adjusting their premium rates for medical inflation. Finally they, provide insights into current practices and levels of premium increases in Indian and international health insurance markets and the way forward.

Download your complimentary copy of the whitepaper here

To continue discussion on this paper or on healthcare, please email

Joanne Buckle joanne.buckle@milliman.com

Rachin Aggarwal rachin.aggarwal@milliman.com



Disclaimer: This article presents information of a general nature and is intended solely for educational purposes. It is not intended as advice for any specific situation and may not be relied upon for any purpose. You should always consult qualified professionals familiar with your circumstances before adopting any strategy or taking any action. Milliman does not guarantee the veracity, reliability, or completeness of this e-Alert and has no responsibility for damages alleged to have been caused by it. This e-Alert is not directed at residents in any jurisdiction where it would contravene local law.

Print | Share