Guaranteed Additions in HDFC Life Sanchay Plus Plan How does the Guarant...
Insurance premium is an amount paid by the policyholder to the insurance company in return for the risk cover. Every insurance company assesses the risk differently and accordingly decides the premium. So if Company A assesses your risk to be low, they will offer you lower premiums. But if Company B considers you to belong to a high risk profile, then they will offer you high premium amount.
There are some other factors also which determine the premiums. Much like any other product, competition is also a factor. Just as affordable prices for a product attracts more customers, here too more affordable premiums for the same benefits will attract more customers. So some company may charge a lower premium to attract more customers while some companies will continue with their premium pricing.
Indian insurance market was opened up only in the year 2000. Before that there was only LIC with no competition. So you will now find a lot of aggressive products and pricing being launched by different companies to reach out to a larger number of customers.
Even within the insurance companies, you will find rates dropping as the years pass as the understanding on the Indian market and associated risks gets better and better. You will find less riskier customers get more attractive rates than others.