Latest incurred claim ratio of insurers: IRDAI updates
A lot of customers compare premiums, coverage, and claim settlement ratios when choosing a health insurer. But they often miss one of the most important indicators of an insurer’s reliability, the Incurred Claim Ratio (ICR). When a medical emergency hits, what seems attractive on paper becomes way less important. At that moment, you need an insurer that is reliable and capable of handling claims efficiently.
In its latest annual report, the Insurance Regulatory and Development Authority of India (IRDAI) has released the incurred claim ratio for general and health insurance companies for the Financial Year 2024-25.
What is incurred claim ratio in health insurance?
The incurred claim ratio tells you how much your insurance company has paid out in claims, as against the net premiums that it has collected during a financial year. Basically, this ratio gives customers a clearer picture of how much an insurer spends on claims versus what they earn from premiums in a given financial year. Experts suggest that the ideal ICR falls between 70% and 90%.
During 2024-25, the aggregate net incurred claims of non-life insurers registered an increase by 9.46% over the previous year as it rose from Rs 1.72 lakh crore in 2023-24 to Rs 1.88 lakh crore in 2024-25.
The overall incurred claims ratio of the non-life insurance industry stood at 82.88% in 2024–25, slightly higher than 82.52% in the previous year. Public sector insurers reported a marginal increase in the incurred claims ratio of 97.30% for the year 2024-25, compared with 97.23% the previous year.
Also read: Star Health Insurance denied full claim of Rs 2.25 lakh, paid only Rs 69,958; policyholder fights back and wins in consumer court
When it comes to private sector general insurers the incurred claim ratio for 2024–25, is 77.50% while for standalone health insurers it is 68.06%, and for specialised insurers it stands at 55%, compared to 76.49%, 63.63%, and 66.58%, respectively, in the previous year, 2023-24.
Let’s dive into the IRDAI data regarding the incurred claim ratios for health and general insurance companies in 2025, using the most recent figures from FY2024–25.
Latest 2024-25 health insurance incurred claim ratio of all general and health insurance companies in India
Note: Health includes Personal Accident
NA indicates that insurer's business was not in operation during the corresponding financial year or in the corresponding segment.
Reclassification/Regrouping in the previous year's figures, if any, by the insurer has not been considered.
Source: IRDAI Annual Report 2024-25
Also read: Health insurance claim settlement lapses: Rs 1 crore penalty imposed on Care Health Insurance by IRDAI
Difference between claim settlement and incurred claim ratio
The incurred claim ratio of an insurance company helps you to gauge how the company, especially the health insurer, pays claims. While a very low incurred claim ratio suggests that the company is very conservative in honoring claims, but even a very high ratio for long period is not considered good as it will make the running of the company unviable and hence, works against the interest of the policyholders. Below is the formula used to calculate the Incurred Claim Ratio (ICR):
ICR= (Total amount spent in settling claims across a year by an insurer/Total premium collected by the insurer in the year) * 100
For instance, if the company’s ICR is 85% and it has collected Rs 10 lakh as premium, it means that it spent Rs 8.5 lakh on claims payment.
Claim settlement ratio (CSR), which represents the percentage of the total number of claims paid by an insurance company against the total number of claims filed with them in a particular period.
For instance, if the claim settlement ratio of an insurance company is 92%, it means that out of every 100 claims received by the company during a particular period, it settled 92 claims on average, within the given timeline.
In its latest annual report, the Insurance Regulatory and Development Authority of India (IRDAI) has released the incurred claim ratio for general and health insurance companies for the Financial Year 2024-25.
What is incurred claim ratio in health insurance?
The incurred claim ratio tells you how much your insurance company has paid out in claims, as against the net premiums that it has collected during a financial year. Basically, this ratio gives customers a clearer picture of how much an insurer spends on claims versus what they earn from premiums in a given financial year. Experts suggest that the ideal ICR falls between 70% and 90%.
During 2024-25, the aggregate net incurred claims of non-life insurers registered an increase by 9.46% over the previous year as it rose from Rs 1.72 lakh crore in 2023-24 to Rs 1.88 lakh crore in 2024-25.
The overall incurred claims ratio of the non-life insurance industry stood at 82.88% in 2024–25, slightly higher than 82.52% in the previous year. Public sector insurers reported a marginal increase in the incurred claims ratio of 97.30% for the year 2024-25, compared with 97.23% the previous year.
Also read: Star Health Insurance denied full claim of Rs 2.25 lakh, paid only Rs 69,958; policyholder fights back and wins in consumer court
When it comes to private sector general insurers the incurred claim ratio for 2024–25, is 77.50% while for standalone health insurers it is 68.06%, and for specialised insurers it stands at 55%, compared to 76.49%, 63.63%, and 66.58%, respectively, in the previous year, 2023-24.
Let’s dive into the IRDAI data regarding the incurred claim ratios for health and general insurance companies in 2025, using the most recent figures from FY2024–25.
Latest 2024-25 health insurance incurred claim ratio of all general and health insurance companies in India
Note: Health includes Personal Accident
NA indicates that insurer's business was not in operation during the corresponding financial year or in the corresponding segment.
Source: IRDAI Annual Report 2024-25
Also read: Health insurance claim settlement lapses: Rs 1 crore penalty imposed on Care Health Insurance by IRDAI
Difference between claim settlement and incurred claim ratio
The incurred claim ratio of an insurance company helps you to gauge how the company, especially the health insurer, pays claims. While a very low incurred claim ratio suggests that the company is very conservative in honoring claims, but even a very high ratio for long period is not considered good as it will make the running of the company unviable and hence, works against the interest of the policyholders. Below is the formula used to calculate the Incurred Claim Ratio (ICR):
ICR= (Total amount spent in settling claims across a year by an insurer/Total premium collected by the insurer in the year) * 100
For instance, if the company’s ICR is 85% and it has collected Rs 10 lakh as premium, it means that it spent Rs 8.5 lakh on claims payment.
Claim settlement ratio (CSR), which represents the percentage of the total number of claims paid by an insurance company against the total number of claims filed with them in a particular period.
For instance, if the claim settlement ratio of an insurance company is 92%, it means that out of every 100 claims received by the company during a particular period, it settled 92 claims on average, within the given timeline.
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