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Health insurers turning cautious while settling claims

Henil Shah
/ Categories: Trending, Personal Finance
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Health insurers turning cautious while settling claims

During the financial year (FY) 2019-20, the general & health insurance companies collected health insurance premium to the tune of Rs 50,758 crore, registering a growth of 13 per cent over the previous year. This is excluding personal accident and travel insurance premiums. Though the four public sector general insurers continue to hold a lion’s share with 49 per cent during FY 2019-20, there was a reduction in the market share of public sector insurers against 52 per cent in FY 2018-19. On the flip side, the share of standalone health insurers has surged from 24 per cent in FY 2018-19 to 27 per cent in FY 2019-20. When it comes to the share of health insurance premium in private sector general insurers, their share has remained at 24 per cent in FY 2018-19 and 2019-20. Having said, the incurred claims ratio of general and health insurers suggests that they are getting cautious while settling health insurance claims. 

 

What is incurred claim ratio? 

Incurred claim ratio (ICR) is the ratio of the net claim that the insurer receives for the premium paid towards insurance policies 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 businesses. For instance, an ICR of 85 per cent implies that the company has spent Rs 85 on claims for every Rs 100 collected as premium. Ideally, the ICR should be between 75 per cent and 90 per cent. Below, we have listed the ICR individually as well as sector-wise. 

 

Sector-wise health insurance incurred claim ratio of general & health insurers (in per cent)

Insurer

2018-19

2019-20

Public sector insurers

107.12

102.91

Private sector insurers

75.85

72.55

Standalone health insurers

60.68

64.13

Source: IRDAI Annual Report

 

Incurred claims ratio of general & health insurers (per cent)

Private sector insurers

2018-19

2019-20

Acko General

23.69

21.08

Bajaj Allianz

85.29

81.96

Bharti AXA

88.55

77.50

Cholamandalam MS

35.30

40.67

Edelweiss General

115.35

113.05

Future Generali

73.31

62.52

Go Digit

10.76

51.83

HDFC Ergo

62.29

69.01

ICICI Lombard

76.45

69.90

IFFCO Tokio

101.92

95.66

Kotak Mahindra

47.20

49.22

Liberty

81.64

87.78

Magma HDI

90.46

72.87

Navi General

46.07

34.69

Raheja QBE

32.87

85.07

Reliance

93.55

89.36

Royal Sundaram

60.52

63.55

SBI General

52.03

50.54

Shriram General

52.51

96.64

Tata AIG

77.89

66.61

Universal Sompo

92.19

76.68

Median

73.31

69.90

Public sector insurers

2018-19

2019-20

National

107.64

103.30

New India

103.74

100.83

Oriental

108.80

104.97

United India

110.51

104.24

Median

108.22

103.77

Standalone health insurers

2018-19

2019-20

Aditya Birla Health

58.61

49.08

HDFC ERGO Health

62.59

73.69

Manipal Cigna

61.94

61.64

Max Bupa

53.93

53.51

Reliance Health

13.57

62.17

Religare Health

55.23

59.13

Star Health

62.73

65.91

Median

58.61

61.64

Source: IRDAI Annual Report

 

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