India tightens health insurance norms for senior citizens

News desk: Indian health insurers have reverted to standard underwriting practices for senior citizens following the conclusion of a limited-period relaxation drive at the end of the last financial year, a move that is expected to impact policy access and affordability for older applicants.

The temporary initiatives, introduced in March as part of a year-end business push, allowed individuals aged 65 to 75 to purchase or renew health insurance policies under eased underwriting norms. In many cases, applicants were able to secure coverage without mandatory medical tests and without additional premium loadings typically applied to pre-existing conditions under select plans offered by private insurers, including products such as HDFC ERGO’s Optima Secure.

With the new financial year now underway, insurers have resumed standard risk assessment protocols, including medical evaluations and loading charges based on health conditions. Industry participants say the shift could slow policy issuance and increase premium costs for senior citizens, a segment that already faces higher entry barriers.

Experts note that such underwriting relaxations are commonly deployed at the end of the financial year to accelerate sales and improve conversion rates, particularly among older age groups where medical screening often leads to policy rejections or delays. However, the return to stricter norms highlights the structural challenges in expanding health insurance coverage among India’s aging population.

“The reintroduction of standard underwriting will likely make it more difficult for seniors with pre-existing conditions to access affordable coverage,” said an insurance industry analyst. “While temporary relaxations help boost short-term uptake, they do not address long-term pricing and risk management challenges.”

The development also comes at a time when the broader insurance market is adjusting to rising cost pressures. Term life insurance premiums are expected to see upward movement in the current financial year, driven by revised actuarial assumptions and higher reinsurance costs, which could indirectly influence pricing strategies across health insurance products.

Although the Insurance Regulatory and Development Authority of India (IRDAI) did not mandate the underwriting relaxations, it allows insurers flexibility in designing products and underwriting frameworks within regulatory guidelines. Market observers say such tactical measures are likely to continue as insurers compete for growth in the senior health segment.

As insurers return to stricter underwriting norms, the gap between accessibility and affordability in senior health insurance remains a key concern, underscoring the need for more sustainable product innovation tailored to the evolving risk profile of older policyholders.