ICICI Prudential Life Insurance consistently tops in claim settlement ratio, a key parameter in choosing your life insurance provider

As you know, claim settlement ratio is an important metric as it serves as an indicator of an insurance company’s commitment to its policyholders in delivering on its promise of providing financial protection and support during challenging times. Shows the company’s potential. More importantly, having a consistent QoQ ratio helps customers make an informed decision.

Among life insurance companies, ICICI Prudential Life Insurance consistently ranks top in claim settlement ratio. ICICI Prudential Life achieved an impressive claim settlement ratio of 98.14% in Q2-FY2024, according to the latest data compiled from public disclosures filed by life insurers. This outstanding performance underlines the insurer’s dedication to providing exceptional customer service and ensuring that policyholders receive timely and equitable claim settlements.

ICICI Prudential Life’s consistently high claim settlement ratio has established a reputation of reliability and trustworthiness among its customers. This achievement reaffirms the insurer’s commitment to improving its services and maintaining customer satisfaction. A notable detail is that, as per the company’s ‘Claims for Sure initiative’, death claims will be settled promptly within a day, subject to certain terms and conditions. Through this service initiative, the company strives to reduce the financial burden on families after such losses.

How is it calculated? Claim settlement ratio highlights the proportion of insurance claims that the insurer successfully addresses compared to the total claims filed by policyholders or their beneficiaries. This ratio is calculated by dividing the total number of insurance claims settled by the total number of claims received by the insurance company, then multiplying the result by 100. For example, if an insurer receives 10,000 new claims within a specific year and settles 9,800 of them while keeping those claims unresolved for various reasons, calculate the claim settlement ratio for that year (9,800/10,000 × 100), which is equal to 98%. As a general guideline, a claim settlement ratio of more than 80% is considered favorable. The country’s leading insurance companies consistently maintain a claim settlement ratio of more than 95%. Timely settlement is important for insurance companies to build trust and long-term relationships.

A quick overview on the claim settlement ratios of some major insurance providers.

Source: Data taken from public disclosure available on company website.