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Car Insurance Premiums Likely to Rise on Reinsurance Costs: A Brief Account

Mumbai (Maharashtra) [India], December 4: Vehicle insurance premiums are expected to rise as insurers face higher reinsurance costs. Reinsurance assists insurance firms in managing major and unforeseen claims by distributing the risk with international partners. As the charges are raised by these international partners, the insurers tend to transfer the increment to the customers. As reinsurance is being driven high because of extreme weather losses, inflation and pressure on economies, car owners may have to pay a higher amount of their premiums.

Dec 04, 2025