New Delhi, Feb. 3 -- The Insurance Regulatory and Development Authority of India (Irdai) has capped insurers' annual premium hikes at 10% for senior citizens. Any increase beyond this limit will now require prior approval from the regulator. While this step enhances transparency and predictability for policyholders, industry experts caution that it could lead to stricter policy issuance, tougher claim settlements, and a potential shift of costs to younger policyholders.

"The insurers shall not revise the premium for senior citizens by more than 10% per annum," Irdai stated in a circular issued on Thursday. It also specified two key scenarios requiring prior consultation: if an insurer intends to hike premiums beyond the 10% cap or withdr...