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Qualities(Good/Bad) of an Insurer

What qualities(both good and bad) would you consider to judge someone who promises to help you during times of distress?

Quality 1- Pays when asked 🙏

In formal language, this is Claim Settlement Ratio - As is obvious, this is the most important quality you should care about. There’s no point paying a premium if the Insurer won’t help you out when you “genuinely” need it the most
Good quality - Higher ratio is better
Ranking of Insurers based on
CLAIMS SETTLEMENT RATIO
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💡 How to read - If IFFCO TOKIO had a total of 100 claims available in a given year, they paid out 97 of them during the same year 🧨



Quality 2- Pays quickly ⏱️

This is Claim Settlement Efficiency Ratio - You should care about this because it measures tendencies of the Insurer to settle claims within an acceptable time(3 months). When you don't have Cashless, this is all the more important because you had paid for the bills out of your own pocket
Good quality - Higher ratio is better
Ranking of Insurers based on
CLAIMS SETTLEMENT EFFICIENCY RATIO
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💡 How to read - If MAGMA HDI had a total of 100 available claims in a year, 96 of them were paid out within 3 months of receiving them 💨



Quality 3- Avoids paying ☠️

This is Claim Repudiation Ratio - Fancy word for stating how aggressive is the Insurer at rejecting/denying any payout for your claim. Of-course this also includes fraudulent/unqualified claims which should be rightfully rejected
Bad quality - Lower ratio is better
Ranking of Insurers based on
CLAIMS REPUDIATION RATIO
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💡 How to read - If SBI General had a total of 100 available claims in a given year, they denied paying out 30 of them during the same year 😠


Quality 4- Takes long to pay⏳

In formal language, this is Claim Outstanding Ratio - You should care about this because it tells you the proportion of cases that are outstanding out of the total claims. This means tendencies to keep your claim in limbo (neither rejected nor settled)
Bad quality - Lower ratio is better
Ranking of Insurers based on
CLAIMS OUTSTANDING RATIO
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💡 How to read - If Cholamandalam had a total of 100 available claims in a given year, they kept 32 of them hanging during the same year 😭



Quality 5-Takes forever to pay ⏳⏳⏳

In formal language, this is Claims Pendency Ratio- This is like a more extreme version of keeping you hanging, generally more than a year since you filed your claim
Bad quality - Lower ratio is better
Ranking of Insurers based on
CLAIMS PENDENCY RATIO
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💡 How to read - If Cholamandalam had a total of 100 available claims for a given year, 30 of them were kept hanging even after a year since receiving them 🤯



Quality 6-Has enough to pay💰

This is Solvency Ratio*- IRDAI requires insurers to maintain a min. solvency of 1.5 at all times. Which means, if I (as an Insurer) expect to make a payments of 100 bucks in the coming year towards potential claims, I should have at-least 1.5 times of that now, which is 150 bucks
Good quality - Higher ratio is better
Ranking of Insurers based on Solvency Ratio
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💡 How to read - If DHFL General was expecting an expense of 100 bucks to settle claims, it had at-least 260 bucks as of now 🤑

*Note - Data for Solvency Ratio is across all verticals(Health, Motor, Marine, etc)

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To play around with an Insurer of your choice, go here
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