Insurance policies Corona Kavach and Corona Rakshak have turned out to be loss-making products for most insurers, prompting them to seek for a re-pricing from the regulator as the high claims payouts are eating into their profits.

“It has turned out that Corona Kavach and Corona Rakshak have been making losses for most of the insurers. All of us launched these products in July (last year).

“We are severely under-priced on Corona Raksha and Corona Kavach policies,” a top executive from a general insurance company said on the condition of anonymity.

Based on data available till June this year, the official said comparing the peak of the pandemic of other countries and of India, the country’s peak was higher than the other countries. “Our second peak has been double of our own peak and higher than any other country in the world. And, I would be surprised if this product is making money for any of the insurers,” said the official.

The official said most of the insurers and the reinsurers have asked the Insurance Regulatory and Development Authority of India (Irdai), for re-pricing of these two policies.

However, the official said it would be difficult to suggest what kind of price revision they are seeking as it differs from company to company.

Another official from the industry said, “As per my understanding, Corona Rakshak and Corona Kavach are loss-making policies for the insurers.”

“Given that there are such huge underwriting losses, companies have been speakingto the regulator that an increase in the premium will help (them). In life, we have already seen an increase in premiums,” said the official.

According to an Icra report in June , based on analysis of 17 general insurers representing 90 per cent of the industry gross direct premium, the underwriting losses are set to rise this fiscal due to higher claims payout.