High premiums, claims disputes create disquiet in insurance landscape

During the winter session, a question was raised about insurance companies investing heavily in real estate or real estate investment trusts (REITs)

Net incurred claims to net earned premium (claims ratio) of the non-life insurance industry stood at 82.52 per cent during 2023-24, compared to 82.95 per cent in the preceding financial year, according to the Insurance Regulatory and Development Authority of India (Irdai) annual report. The ratio was even lower for the private sector.

 

The percentages cap a month of grim news worldwide, including the shocking case of the UnitedHealthCare CEO being shot dead in New York by a disgruntled health claimant. Health insurance is creating problems across the globe, including India.

 

Each rejected claim is increasingly becoming a minefield. The