Health Insurance Incurred Claim Ratio of Popular Health Insurance Companies

Though there are many good and reliable health insurance companies in the market, finding the perfect policy to suit your needs might still be a burdensome task. So, how do you make a decisive decision of buying a good health insurance policy? Buying a good health insurance plan requires you to think about a great number of things such as coverage amount, premium to be paid, benefits earned and more.

All these aspects are very important and need consideration while buying a health policy. However, one such aspect that suffices for most of the things is choosing the right health insurance company. If you choose the right insurance company, most of the things fall into place. Now, the point is, how to choose the best health insurer.

When you have so many insurance companies to choose from, it is obvious to get confused in making the right choice.  Moreover, there are various components that can be checked while choosing a good insurance provider? Checking all of them may not be possible. But you can check the most prominent one, which is related to claim settlement.  Hence, while looking for plans to secure your health, make sure to pay great attention to the health insurance claim ratio, which is instrumental in helping you pick the right insurer.

What is Incurred Claim Ratio Meaning?

Health Insurance Incurred Claim Ratio (ICR) is a ratio that measures the capability of an insurance company to pay claims. If you go by its definition, ICR is the total claims paid by an insurance provider divided by the total premium received/earned by them over a period of time.

So, if the ICR of your insurer is above 100%, it means that the claims paid by the company are more as compared to the premium received. If this is the case, it means the business of the insurer might be suffering and they might reject certain claims or even raise the premium price to be in business.

Similarly, if the incurred claim ratio health insurance of an insurer is between 50 to 100%, it implies that the insurer has received enough money in premiums as compared to what they have paid in claims. If this is the case, it means that the insurer is running a steady business that is generating good money and is capable of paying your claims.

On the other hand, if an insurer has ICR that is below 50%, it means that the company is making huge profits. But at the same time, it also means that the business may be hardly settling claims, which is not good news for the policyholder.

So, basically if the ICR is between the range of 75 to 90%, it can be termed as the best claim settlement ratio in health insurance.

Let’s take a look at the ICR of insurance companies in India during the period 2020-21 and 2021-22 to understand which insurance company might serve your purpose better in 2023.

Incurred Claim Ratio for General insurance companies

Incurred Claim Ratio for Standalone Health Insurance Companies 

There has been an increase in the cost of healthcare treatments over the last few years. The jump is obvious in the post covid scenario due to the scare of the disease. It indicates that healthcare has become a subject of supreme importance in the present time.

Though it may not always be possible to avoid getting sick or visiting the hospital, staying prepared for a medical or health emergency with a comprehensive health insurance plan is necessary. And it can be done with the help of a health insurance plan purchased from a reliable health insurance company with a good ICR or Incurred Claim Ratio