Star Health Incurred Claim Ratio
- What& 039;s ICR?
- How it& 039;s calculated?
- Star Health Insurance ICR
An incurred claims ratio (ICR) is calculated by the total amount of claims paid by the insurer out of the premiums they received in a financial year.
Star Health and Allied Insurance Company is known to be one of the trusted and credible health insurers that outperforms their claim settlement record every year. Similarly to its CSR, the Star Health Insurance ICR tells us how efficiently and reliably the company addresses its customers, helping them achieve their health insurance claims.
Apart from this, there is a lot to know about the incurred claims ratio of an insurer like Star Health. So we have curated this page to educate you about ICR, how to calculate ICR, how CSR and ICR are different from each other and more. To learn more about the same, read on.
According to the IRDAI reports of 2023, the incurred claim ratio of the Star Health Insurance company was 65%. For more information about Star Health Insurance’s ICR, or any other facts, you can click here.
The calculation of the incurred claims ratio is based on the formula;
ICR=(Net claims paid) / (Net premiums collected)
For example;
If Star Health and Allied Insurance Company receive INR 10 Crores as premiums (in a year), and they paid INR 6.5 Crores in total to the policyholders when they raised a claim against their policy. Then the incurred claim ratio of Star Health Insurance will be:
ICR=(6.5/10)X100=65%
Hence, the Star Health Insurance ICR is 65% here.
Most people don’t know how the incurred claims ratio is different from the claim settlement ratio (CSR), which complicates their way to receiving the policy benefits even after raising a claim. Before investing in a health insurance policy, you must know the differences between CSR and ICR:
| Specifications | CSR | ICR |
| Based on paid claims (formula) | The ratio of total claims settled and total claims filed (to the insurer) | The ratio of total claims paid and total premiums received (by the insurer) |
| Ideal ratio | Somewhere around 90 to 100% (the higher the better) | Approximately 50 to 80% and more (higher ICR means higher credibility of the insurer) |
| Tool of consideration | Time taken for claims settlement is not considered mandatory | When ICR is calculated, how much time it took to pay out the claims is considered |
| What does it mean about the insurer? | Shows the frequency of the insurer to settle claims throughout the year and in the past | Signifies the financial capability of the company showing how much it can provide to its policyholders |
No wonder checking out the coverage benefits, sum insured options, plan specifications and exclusions is important to know before buying a health insurance policy. On the other hand, it’s mandatory to check the incurred claims ratio of the company before investing in the policy. The incurred claims ratio (ICR) of Star Health Insurance is 65% which is considered to be highly credible and the claim settlement record is also high of the insurer.
What else do you want to know about Star Health Insurance’s incurred claims ratio? Call us at 1800 4200 269 and connect with the health insurance experts of PolicyX.com.
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Know More About Health Insurance Companies
The incurred claims ratio of Star Health and Allied Insurance Co. Ltd. was approximately 65% in FY-2023.
Checking the incurred claims ratio of the insurer is one of the most important factors when deciding to purchase a policy.
The ICR of an insurance company is the ratio of total claims paid and total premiums received by the insurer.
The higher the ICR, the higher will be the credibility and claims settlement record of the company. A 60-100% or more is considered a good ICR.
Yes, you can consider a good ICR percentage as the ability of the insurer to settle certain claims in a year.
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Simran has an experience of 3 years in insurance content writing. She transitioned from hospitality to the insurance industry after her emerging interest in how vast insurance is. With her ability to write complex insurance concepts in a simple, relatable manner she keeps her audience hooked and solves their doubts smoothly.
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