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Business
Insurers Raise Property Premiums, Slash Discounts After Gujarat Floods
✍️ Business Standard
🗓 20 Sep 2026, 08:01 PM
👁 73
Following the recent floods in Gujarat, insurance firms have increased property insurance premiums and reduced discount schemes.
The monsoon‑induced floods that swept across Gujarat earlier this month caused extensive damage to homes and commercial establishments, prompting a reassessment of risk by the insurance sector.
In response, major property insurers have announced a hike in premiums for new policies and a scaling back of discount incentives that were previously offered to customers in flood‑prone zones.
The adjustments reflect the insurers' need to offset the surge in claims and the heightened exposure to future flood events, analysts say.
Policyholders may face higher out‑of‑pocket costs, while industry observers note that the move could encourage greater emphasis on risk mitigation and stricter underwriting standards.
In response, major property insurers have announced a hike in premiums for new policies and a scaling back of discount incentives that were previously offered to customers in flood‑prone zones.
The adjustments reflect the insurers' need to offset the surge in claims and the heightened exposure to future flood events, analysts say.
Policyholders may face higher out‑of‑pocket costs, while industry observers note that the move could encourage greater emphasis on risk mitigation and stricter underwriting standards.