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A recent study done by the Insurance Brokers Association of India (IBAI) reveals that there is a substantial difference in claim settlement ratio and claim paid ratio of the general insurance industry.
The data shows that while the non-life industry has settled 81.60% of the total claims received, it only paid 35.47% of the total claim amount requested during the FY 2023, a massive difference of 44.64%
Among non-life insurers, Aditya Birla Health, Acko and Niva Bupa are the top three insurers in terms of claim amount paid with respect to the claim settled.
Aditya Birla Health is the leader in terms of claims settled and claim amount paid. The company has settled 94.47% claims and paid 70.43% of the total amount on claims received during FY 2023.
Similarly, Acko and Niva Bupa have settled 88.20% and 88.41% claims but paid 67.97% and 66.94% of the total claim amount, respectively.
Others in the top ten list were Care Health, Zuno, Universal Sompo, Reliance, Zurich Kotak, New India and HDFC ERGO.
Let us look at the table to know more:
|
General insurers |
Claim requests settled in FY 2023 |
Claim amount paid in FY 2023 |
Difference |
|
Aditya Birla Health |
94.47% |
70.43% |
24.04% |
|
Acko |
88.20% |
67.97% |
20.23% |
|
Niva Bupa |
88.41% |
66.94% |
21.47% |
|
Care Health |
87.44% |
65.62% |
21.82% |
|
Zuno |
88.91% |
65.34% |
23.57% |
|
Universal Sompo |
91.88% |
64.82% |
27.06% |
|
Reliance |
84.55% |
62.35% |
22.20% |
|
Zurich Kotak |
86.55% |
61.36% |
25.19% |
|
New India |
93.13% |
57.62% |
35.51% |
|
HDFC ERGO |
94.32% |
56.94% |
37.38% |
|
Manipal Cigna |
88.32% |
55.45% |
32.87% |
|
SBI |
85.12% |
55.17% |
29.95% |
|
Raheja QBE |
89.18% |
54.93% |
34.25% |
|
Future Generali |
89.63% |
54.82% |
34.81% |
|
IFFCO Tokio |
86.27% |
54.62% |
31.65% |
|
Star Health |
74.90% |
53.93% |
20.97% |
|
Oriental Insurance |
78.87% |
50.73% |
28.14% |
|
Go Digit |
87.71% |
50.63% |
37.08% |
|
Tata AIG |
81.95% |
49.32% |
32.63% |
|
National Insurance |
80.03% |
49.00% |
31.03% |
|
Royal Sundaram |
84.10% |
48.33% |
35.77% |
|
Liberty |
85.94% |
46.22% |
39.72% |
|
Bajaj Allianz |
73.38% |
45.51% |
27.87% |
|
Magma HDI |
79.75% |
44.60% |
35.15% |
|
ICICI Lombard |
85.44% |
44.17% |
41.27% |
|
United India |
84.94% |
42.61% |
42.33% |
|
Chola MS |
76.02% |
41.79% |
34.23% |
|
Navi |
78.34% |
32.00% |
46.34% |
|
Shriram |
70.88% |
27.21% |
43.67% |
|
Industry total |
80.11% |
35.47% |
44.64% |
In terms of claim settlement ratio, Aditya Birla Health Insurance has emerged as the top performer with a claim settlement ratio of 94.47%, followed closely by HDFC ERGO at 94.32% and New India at 93%.
Rounding off the top 5 are Universal Sompo with 92% and Future Generali with 90%.
Several insurers have shown notable improvements in 2023. Future Generali improved from 72% in 2022 to 90% in 2023. Similarly, Acko has shown significant progress moving from 73% to 88%.
If we look at the least difference between the claim settled and claim paid, Acko, Star Health and Niva Bupa are the top three.
The difference in the number of claims settled and the amount paid was 20.23% for Acko. Such differences are 20.97% for Star Health and 21.47% for Niva Bupa in FY 2023.