How well does health insurer settle claims? Latest Irdai incurred claim ratio of general, health insurance companies in India
health insurance company provides an indication of the percentage of claims it settles in a financial year out of the total claims it receives.
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The Insurance Regulatory and Development Authority of India (Irdai) recently published its annual report, highlighting the claims payment data of general and health insurance companies for the financial year 2022-23. From last year, the regulator has started sharing only the incurred claim ratio (ICR) of general and health insurers in its annual report, rather than the claim settlement ratio, as in previous years.
Health insurance: Understanding the difference between claim settlement ratio and incurred claim ratio
As a policyholder, it's important not to confuse these two terms. The claim settlement ratio represents the percentage of number of claims an insurance company settles within a specific period. For example, a claim settlement ratio of 92% means that for every 100 claims filed, 92 are successfully settled within the stipulated time.
The incurred claim ratio, however, refers to the percentage of the total claim amount paid out relative to the total premiums collected during the same period. For instance, an incurred claim ratio of 90% means that for every Rs 100 in premiums collected, the insurance company spends Rs 90 on claims within the year.
A look at Irdai data on the incurred
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