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.
This ratio assists you with seeing how steady clients have been in renewing their policies every year.
It characterizes how fortunate or unfortunate an insurance agency’s monetary financial situation is on defined solvency norms.
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.