Check how much your non-life and health insurers paid against the premium they collect

An analysis of the net incurred claims ratio released by General Insurance Council, a trade body of non-life and health insurance companies reveals that the net incurred claims ratio of the industry has improved from 79% in FY 22 to 82% in FY 23.

This means non-life and health insurers have paid claims of Rs.82 for every Rs.100 they collected in the form of premium last financial year.

Net Incurred claims ratio is the claims paid against the premium received in a year. Typically, a ratio of less than 100 indicates that insurers are making money. Hence, a low incurred ratio indicates healthy growth prospects and higher profitability in non-life business.

On the other hand, a high net incurred ratio is good for policyholders. This would mean if the net incurred claims ratio is more than 100%, there will be a reduction in profitability of non-life insurers.

From policyholders’ point of view, Oriental Insurance topped the list with net incurred ratio of 112%. Notably, it is the only insurer that has net incurred claims of more than 100%.

National Insurance and New India Assurance were the next two with incurred claim ratio of 99% and 96%, respectively. Interestingly, all top three companies are PSUs. Another PSU company United India ranked fifth.

Among private insurers, Future Generali commands the highest net incurred ratio of 94% in FY 2023. These five companies have incurred claims ration over 90%.

Further, standalone health insurers were not so good from policyholder’s point of view. All standalone health companies have less than 70% of net incurred claims. Care Health and Niva Bupa were at the bottom of the list.

Here is how your non-life and general insurers performed in terms of net incurred ratio:

Source: GIC