Increase in Insurance Premium Rate Isn’t Always Bad!

It is an indication of something good because it continues to be a promise that your increasing losses will be reimbursed. The price rise is terrible. It pinches you where it hurts the most. You should rethink and regroup your life and plans.

However, when premium rates are raised, as in many things in insurance, it is not precisely what it seems.

A premium increase indicates something good because it is still a promise that your increasing losses will be reimbursed.

Increasing claims
When insurance companies increase premium rates, they catch up with growing claims. But, the way it works in the real world, they rarely are before that race.

There may be a higher number of claims (as during COVID-19 or a natural disaster), claims of more significant value (because of the rising cost of healthcare or car repairs or whatever) or a mixture of both.

Source-

https://www.thehindu.com/business/Industry/an-insurance-premium-rate-increase-isnt-always-bad/article65565510.ece

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