Incurred claim ratio of general insurance companies witnessed a decline of 6% from 89% in FY 2011-12 to 83% in FY 2012-13, shows IRDA’s annual report. Incurred claim ratio is net incurred claims to net premium. Simply put, it is claims received for the premium paid towards insurance policies in a year; hence, low incurred ratio indicates healthy growth prospects in non-life business.
Incurred claim ratio of general insurance companies in FY 2012-13
|
Sector |
Public Sector |
Private Sector |
Total |
|
Fire |
71.55% |
52.46% |
66.82% |
|
Marine |
60.39% |
76.88% |
64.96% |
|
Motor |
92.62% |
81.26% |
87.06% |
|
Health |
103.21% |
79.08% |
96.43% |
|
Others |
46.35% |
78.20% |
55.31% |
|
Total |
84.79% |
79.56% |
82.79% |
Source: IRDA
Private insurers saw a decline of 8% from 88% in FY 2011-12 to 80% in FY 2012-13 whereas public general insurers recorded a 4% dip from 89% in FY 2011-12 to 85% in FY 2012-13.
Among public insurers, Oriental Insurance and United Insurance posted incurred claim ratios of 82% and 85% respectively while both National Insurance and New India Assurance recorded incurred claim ratios of 86% in FY 2012-13.
Among private insurers, ICICI Lombard recorded an incurred claim ratio of 84% in FY 2012-13 against 101% in FY 2011-12. Also, Bajaj Allianz and Reliance posted incurred claim ratios of 72% and 93% respectively in previous fiscal.
A maximum decline of 30% in incurred claim ratio was recorded in fire insurance segment from 97% in FY 2011-12 to 67% in FY 2012-13. Motor insurance posted incurred claim ratio of 87% in FY 2012-13 compared to 95% in FY 2011-12, a fall of 8%. However, health insurance continued to remain cause of concern for general insurance companies since the segment recorded 96% incurred claim ratio in FY 2012-13 compared to 94% in FY 2011-12, an increase of by 2%.