What is Claim Settlement Ratio and why is it important?

What is Claim Settlement Ratio?

Claim Settlement Ratio refers to the % of claims settled by an Insurance Company against the number of claims submitted.

For Ex: If 100 people submit claims and the company pays 80 of them, the Claim Settlement Ratio is 80%

Why is Claim Settlement Ratio Important?

It is important because, the higher the claim settlement ratio of the insurance company from which you take the policy, the better are the chances of your family getting paid in case of any mishap