Here are some alarming stats 👇
Among the top 10 insurers by health premiums, most settled claims on only four out of five policies on which claims were raised in 2022-23.
This gap is particularly stark among insurers that exclusively operate in the health segment. 🧐
For instance, StarHealth, the second-largest health insurer by premiums, paid just 55% of the total amount claimed 😨
Of the number of health insurance complaints filed with the ombudsman about 60% related to health policies of three standalone health insurers- namely StarHealth, CareHealth, and NivaBupa 🤷♂️
Incurred Claim Ratio or ICR refers to the total claim amount paid by the insurance company in ratio to the total premium amount collected in a financial year.
In the last five years, excluding the peak Covid year of 2021-22, the incurred claims of the industry has ranged between 88% and 94% of premiums collected.
In contrast, individual health policies, present a different dynamic.
For insurers, this segment is the most profitable, with an incurred claims ratio of a mere 75% in 2023-24 😅
So the moral of the story?
For individuals with a health insurance policy from insurers that exclusively operate in the health segment- God bless us 🫣
Data Source: Mint
