Life Insurance Company Ratings 2013

*Please note that the quotes shown will be from our partners

Life Insurance is a product that is sold and bought on mutual trust. There are certain parameters on the basis of which the customers and agencies assign ratings to various players. Such parameters include insurer's financial stability, customer service and customer satisfaction. Then there are more specific parameters such as the premium earned during a fiscal year, claim settlement ratio, solvency ratio and the turnaround time to settle a claim.

Essentially, when a customer life insurance plan, he/she is buying the peace of mind and trust that he/she can put up in that insurance company for a lifetime. It's not easy to decide which life insurance is best among all. It needs a lot of shopping around to be able to settle on one company to get insured from.

Here, we have tried to measure the excellence of Indian Life Insurance companies based on certain criterions. The data has been derived from the latest IRDA report.

1). Number of Policies Sold – The number of policies that a life insurance company issues in a fiscal year is only a reflection of how well the company is performing in the market. As can be seen, the second biggest player Reliance Life is lagging by almost 30 times as compared to the undisputed market leader LIC.

S.No.

Insurer

Total Individual Policies (New Business)

1

LIC

35724749

2

Reliance

1093624

3

Bajaj Allianz

1052336

4

ICICI Prudential

1028826

5

SBI Life

881550

 

2). Total Life Insurance Premium Earned – A major fraction of the premium earned by a life insurance company goes into the fund that is deployed to pay the insured when he/she files a claim. It becomes a measure of how financially sound an insurer is. Thus, the premium earned by an insurance company suggests whether or not, the life insurance company be able to fulfill its obligation of making up for the loss of the insured in case of an eventuality.

S.No.

Insurer

Total Life Insurance Premium Earned (in crores)

1

LIC

202889.28

2

ICICI Prudential

14021.58

3

SBI Life

13133.74

4

HDFC Standard

10202.40

5

Bajaj Allianz

7483.80

 

3). Claim Settlement Ratio – Assessing the claim settlement ratio is the most significant criteria in establishing the credibility of a life insurer. Put simply, claim settlement is the ratio of the number of claims settled to the total number of claims filed in a particular fiscal year. Needless to say, LIC rules the rooster here too. The highest CSR that LIC boasts of, is primarily the reason, why it gets to enjoy the trust of the major chunk of the market.

S.No.

Insurer

No. of Claim Filed

No. of Claims Paid

Claim Settlement Ratio

1

LIC

731336

712501

97.42

2

ICICI Prudential

14829

14314

96.53

3

HDFC Standard

5149

4952

96.17

4

SBI Life

11864

11328

95.48

5

Kotak Mahindra

2949

2716

92.1

 

4). Claim Settlement Turnaround Time – One thing that claim settlement ratio fails to take into account is the time taken by the life insurance company to settle a claim. So, a company having a 100% claim settlement ratio may take a week or 6 months or even more to make the actual payment. Thus, it is as important to check the turnaround time of a company to settle a claim. The way we have figured out this turnaround time is by assessing, what fraction of the claims were addressed within 30 days of filing. The larger the percentage of claim settled within 30 days, the faster an insurer is supposed to be.

S.No.

Insurer

Total Claims Settled 

No. of Claims Settled within 30 Days of Filing

% of Claims Settled within 30 Days of Filing

1

IDBI Federal

423

423

100

2

IndiaFirst

449

435

96.8

3

Tata AIA

4287

4093

95.4

4

HDFC Standard

4952

4588

92.6

5

SBI Life

11328

10450

92.2

 

5). Awards and Recognitions – The awards and recognitions earned by the insurance company is  the most important parameter for assessing insurance company ratings. Achievements of a company is a but just a testimony of the efficiency and effectivity of the products and services it offers. Here we have listed the key awards given by the Indian Insurance Awards in the life insurance segment in the year 2012.

 

Award

Winner

a.

Excellence in Growth Award

MetLife

b.

Best Non-Urban Coverage Award 2012

Reliance Life Insurance

c.

Best Product Innovation Award 2012

HDFC Standard Life Insurance

d.

Under-served Market Penetration Award

SBI Life Insurance

e.

Technology Leader Award

Canara HSBC OBC Life Insurance

f.

Claims Service of the Year Award

SBI Life Insurance

g.

Life Insurance Company of the Year Award

IndiaFirst Life Insurance 

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