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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%

 

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