Insurance settlement claims dip to 82.52% in FY24

Net incurred claims to net earned premium (claims ratio) of non-life insurance industry stood at 82.52% during 2023-24 as against 82.95 % in the preceding fiscal year, as per the IRDAI’s annual report.

According to the Annual Report 2023-24 of the Insurance Regulatory and Development Authority of India (IRDAI), during 2023-24, the non-life insurance industry underwrote a total direct premium of Rs 2.90 lakh crore in India registering a growth of 12.76% from previous year.

The contribution of public sector general insurers increased 8.88% from Rs 82,891 crore in 2022-23 to Rs 90,252 crore in 2023-24.

Private sector insurers, including standalone health insurers, have underwritten Rs 1.88 lakh crore as against Rs 1.58 lakh crore in 2022-23.

The aggregate profit of the non-life insurance sector was Rs 10,119 crore as against a net loss of Rs 2,566 crore in 2022-23.

During 2023-24, the aggregate net incurred claims saw a 15.39% increase to Rs 1.72 lakh crore from Rs 1.49 lakh crore.

“The incurred claims ratio (net incurred claims to net earned premium) of the non-life insurance industry was 82.52% during 2023-24 as against 82.95% of the previous year,” the report said.

The incurred claims ratio for public sector insurers was 97.23% for 2023-24 as against the previous year’s incurred claims ratio of 99.02%.