Mumbai: Buying High Value Term Insurance Proposers will have to provide not only proof of income but also salary details. reinsurance giant munich ray has come out with new conditions to support reinsurance programs of Insurance companies.

According to industry sources, Munich Re has also proposed to increase its rates by up to 50%. Reinsurance rates are an input for determination of insurance rates on term policies. The increase in term insurance premium will not be fully reflected as only a portion of the risk is reinsured. In addition to reinsurance rates, Indian insurance companies price policies based on industry experience with regard to mortality rates.

In its September 18 edition, TOI had reported that the German reinsurer had asked the companies to tighten the process before reviewing their contracts in October. The company has now officially conveyed its intention to increase the rates and specified the new procedure for underwriting.

“Insurers are pricing their term policies on the basis of reinsurance support. Even with the increase in rates, premiums tend to be lower than rates for the general insured population when they are based on mortality rates. Abhay Tiwari, MD and CEO, Star Union Dai-ichi Life Insurance said, “Companies are aggressively pricing high-value policies with the expectation that the experience in this category will be better than the general segment.