Incurred Claims Ratio (ICR) is the value of all claims paid by a general/ non-life insurance company for the net amount of premium earned during the financial year. It is the ratio of the claims settled to the premium received. ICR indicates the company’s ability to pay the claims raised by the insured. Incurred Claims Ratio (ICR) suggests the financial capabilities of the insurance company in conjunction with revenues received and claims paid.Incurred Claims Ratio is calculated for various lines of business such as Health, Motor, Fire, Marine and others for a general insurance company. Individual ICR data on different lines of business can be looked upon to judge the claims settlement data for a respective class of insurer.Collectively, the figures are represented as a total Incurred Claims Ratio (ICR).
How is Measured?
Incurred Claim Ratio is calculated as the net claim settled by an insurer to the net premiums collected in any given year.
| Incurred Claims Ratio = Net Claims Incurred/ Net Earned Premium An Incurred Claim Ratio of 85% implies that the company has compensated Rs 85 as claim payout for every Rs 100 collected as premium |
Incurred Claims Ratio (ICR) for FY 2016-17:
| Private Sector General Insurers | Net Earned Premium (in crores) |
Claims Incurred (in crores) |
Total ICR (FY 2016-17) |
|---|---|---|---|
| Bajaj Allianz | 4937.05 | 3476.29 | 70.41% |
| Bharti AXA | 1138.79 | 988.92 | 86.84% |
| Cholamandalam | 2248.07 | 1638.96 | 72.91% |
| Future Generali | 1087.9 | 841.09 | 77.31% |
| HDFC ERGO | 1651.58 | 1270.07 | 76.90% |
| L&T (now HDFC ERGO) | 989.1 | 769.8 | 77.83% |
| ICICI Lombard | 6163.6 | 4954.33 | 80.38% |
| IFFCO-TOKIO | 3511 | 2877.72 | 81.96% |
| Kotak Life | 32.86 | 24.01 | 73.09% |
| Liberty Videocon | 416.97 | 329.99 | 79.14% |
| Magma HDI | 327.09 | 258.74 | 79.10% |
| Raheja OBE | 37.46 | 25.84 | 68.97% |
| Reliance | 2088.95 | 1926.72 | 92.23% |
| Royal Sundaram | 1720.99 | 1344.67 | 78.13% |
| SBI | 1476.42 | 1107.52 | 75.01% |
| Shriram | 1682.33 | 1725.49 | 102.57% |
| TATA AIG | 2407.45 | 1741.12 | 72.32% |
| Universal Sompo | 662.45 | 469.75 | 70.91% |
| Public Sector General Insurers | Net Earned Premium (in crores) |
Claims Incurred (in crores) |
Total ICR (FY 2016-17) |
|---|---|---|---|
| National Insurance | 10803.62 | 10506.68 | 97.25% |
| New India Assurance | 17814.79 | 16256.92 | 91.26% |
| Oriental Insurance | 8383.26 | 9398.09 | 112.11% |
| United India Insurance | 12032.31 | 12881.5 | 107.06% |
| Standalone Health Insurers | Net Earned Premium (in crores) |
Claims Incurred (in crores) |
Total ICR (FY 2016-17) |
|---|---|---|---|
| Aditya Birla | 13.48 | 14.92 | 110.68% |
| Apollo Munich | 1101.31 | 605.59 | 54.99% |
| Cigna TTK | 181.77 | 87.5 | 48.14% |
| Max Bupa | 544.28 | 282.81 | 51.96% |
| Religare | 484 | 244.5 | 50.52% |
| Star Health | 1911.45 | 1156.71 | 60.51% |