IRDA publishes “Incurred Claim Ratio” data in its annual report. The Incurred Claims Ratio (ICR) helps you pick health insurance or a general insurance company.

Table Content

• What is the Incurred Claims Ratio?
• ICR 2018-19 – An Analysis of Private and Standalone Health Insurers
• What does ICR mean?
• What’s an Ideal Incurred Claim Ratio Range?
• Difference between ICR and CSR
• Related posts:

What is the Incurred Claims Ratio?

Incurred Claims Ratio (ICR) refers to the total amount of claims paid by a general insurance company divided by the total amount of premium collected during the same period. ICR determines the company’s ability to pay the claims raised by the insured people.

Let’s understand ICR with the help of an example.

For the 90% incurred claims ratio, Rs 900 is paid back as the amount of a claim for every Rs 1000 of premium collected during a given period. ICR is the ratio of the total claims paid to the premiums received.