General Insurers manage to reduce claims ratio in health insurance

MUMBAI: The general insurance industry has pulled in all stops to reduce claims ratio under the health insurance portfolio. More than 13 players have lower claims ratio in 2010-11 as compared to what they recorded in 2009-2010, as per the Handbook on Indian Insurance Statistics 2010-11 released by Insurance Regulatory and Development Authority ( IRDA).

All the public sector general insurance players, except New India Assurance Company have a claims ratio that is lowest in the past 5 years. However, the waters are still above the head level as the claims are higher than the premium being garnered.

Among all the players, Reliance General Insurance Company logged in the worst claims ratio of 123%. The company paid out claims of Rs 25,591 lakh off the Rs 20,696 lakh premium that it collected during the year. United India Insurance Company has a claims ratio of 114.36%, highest among the PSU players.

New players such as Universal Sompo General Insurance too have claims higher than premium collection.

Under cutting in premium rates seems to be the reason for high claims ratio, say experts. After detarriffing companies have been offering huge discounts in health insurance premia to mop up higher market share.