Incurred Claims Ratio – How useful is it in evaluating an insurance plan?

Incurred Claims Ratio - Health Insurance

I recently received a comment on my health insurance post. Here it is.

Hi,

I read up on your comparison of health insurance policies. There are 2 statistics for the Royal Sundaram Lifeline Policy:

a. CLAIMS PENDING FOR OVER 6 MONTHS (% OF CLAIMS PENDING AS OF 31 DEC 2014) which is 21%
b. Incurred Claim Ratio of the Insurer being 52.89%

1. Can you please comment on the above and how key these parameter are.
2. Also, would you continue to have a positive outlook for this policy when the ICR is this low.
3. Can we, as individuals, be confident that our claims would be successful on time?

—-

Now, there is confusion galore with all the terms used by the insurance industry. The latest one is the Incurred Claims Ratio. I believe it has been confused with the Claims Settlement Ratio.

Let’s understand the difference between the two. 

Read more