Always Check for These Key Ratios Before Buying an Insurance Policy

Whenever you purchase an insurance policy, it’s essential to consider a couple of Ratios that show the financial stability and trustworthiness of the company. These things can help you in making an informed decision.

Persistence ratio
This ratio assists you with seeing how steady clients have been in renewing their policies every year.

Solvency ratio
It characterizes how fortunate or unfortunate an insurance agency’s monetary financial situation is on defined solvency norms.

Combined ratio
This indicates a general insurance company’s total outflow with respect to operating expenses, commissions paid, and incurred claims and losses on its net earned premium.

Incurred claims ratio
The ICR metric indicates a general insurer’s capacity to pay claims. It really is calculated as the total value of all claims paid by the company divided by the total amount of premium gathered in a financial year.


Sharing is caring!