Purchasing a life insurance policy is a significant investment and one must be confident that they are investing in the right place. Checking the claim settlement ratio of an insurer is a good way to ascertain the intentions of the insurer. It refers to the number of claims that a company has successfully closed in a year in comparison to the total number of claims made.Read more
At the end of each financial year, the Insurance Regulatory and Development Authority releases a list of the claims settlement ratios of various insurance companies. It is always safer to invest in companies that have a higher claim settlement ratio.
The claims ratio is a percentage calculated by dividing the number of claims closed in a company in a year by the total number of claims that the company receives.
The total number of claims is calculated by adding the number of fresh claims received to the number of pending claims that are carried over from the previous financial year.
Aegon Life Insurance Claim Settlement Ratio has increased over the last few years, proving that the company is committed to providing safe and reliable insurance policies to its customers.
Checking a company's CSR is one of the first actions of any customer who intends to purchase an insurance policy, so it is essential to make sure that the company maintains a high CSR, which can only be done if the company shows a good performance.
Aegon Life Claim Settlement Ratio is calculated as follows:
CSR = number of claims settled in a financial year / Total number of claims received by the company
Total number of claims = number of claims received in a financial year + Pending claims carried over from the previous year.
The claims ratio of any company is always calculated as a percentage. The higher the percentage, the better is the reputation of the company for settling the claims of the customers.
As an example, we can use this ratio for the financial year 2018-2019.
|Insurer||Pending Claims||Number of claims received||Total number of claims||Number of claims paid out||Claim Settlement Ratio|
It is always good to check the claim settlement ratio of an insurance company before planning and investing in it. A customer may use the above formula to calculate the same or check the list issued by IRDAI.
A high CSR is an indication of the dependability of the company. A company that shows a rise in CSR value over time is more trustworthy than the others.
Listed below is the Aegon Life Claim Settlement Ratio over the past five years:
|Financial Year||Claim Settlement Ratio|
|2014 - 2015||89.78%|
|2015 - 2016||95.31%|
|2016 - 2017||97.11%|
|2017 - 2018||95.67%|
|2018 - 2019||98.01%|
The table displays the claims ratio of the company over the past five years.
This is an indicator of the financial health of an insurer.
Customers must refer to the Aegon Life Insurance Claim Settlement Ratio before they invest in any of the life insurance policies offered by the company.
Each person chooses a plan that is in tune with their financial needs and goals. However, some points must be borne in mind:
The type of policies covered under the claims ratio calculations will remain undisclosed to the customer.
CSR is always represented in the form of percentages.
The number of claims denied will be calculated by subtracting the ratio from 100.
The CSR is applicable for only one financial year at a time.
Aegon Life Insurance is one of the leading insurance companies in India. It has a robust online presence as it was one of the first few companies in the country to begin selling term plans online.
Aegon Life Claim Settlement Ratio is one of the indicators of the success of the company. Their approach towards customer satisfaction ensures that they maintain a high claims ratio of 98.01%, making them one of the most trusted brands for life insurance.
Making a detailed study of the claim settlement ratio of a company is a must. It is also necessary to ensure that the increase in the ratio is subtle and not drastic.
In other words, a company with a 3% increase, over two financial years, in claim settlement is always more dependable than one that shows a 10% increase in the same amount of time.