Published On: Wed, Feb 7th, 2018

Aegon Life Leads in Average Claim Settlement Ratioin IRDA’s 2016-17 Rankings!

According to the IRDA 2016-17 rankings, the average claim settlement ratio of Aegon Life is 97.11%!

Life insurance is a serious business. After all, a policyholder trusts a life insurance company to secure his or her loved ones’ financial future. To ensure you pick the right company, investors look towards the claim settlement ratio—a metric that reflects the total number of claims a company accepts.

For a long time, it was public life insurance players that led this metric. These are government-owned companies that displayed excellent customer satisfaction and managed to verify and accept most claims.

According to the Insurance and Regulatory Development Authority (IRDA), the claim settlement for private players had gone up by 2.24%, at an average of 93.72%. However, Aegon Life’saverage claim settlement ratio stood at 97.11%, higher than the average for private players. In 2016-17, we honoured 571 claims and paid INR 56.640 crore during this period.

This was possible thanks to Aegon Life’ssmart and innovative products that offer exciting customization options and top-notch customer service.

So why is this claim settlement ratio so important? After all, it is just a metric, a percentage, just some number. It is because the metric reflects a lot on the company one may choose to insure their life.

Claim Settlement Ratio as previously mentioned is the total number of claims a life insurance company accepts in a certain period of time. Reflected in percentage, its calculation is pretty simple to understand.

Claim Settlement Ratio = Total Number of claims approved/Total Number of claims received.

  • Point to Remember: This percentage is measured for all the company products put together and not one single product.

Here is an example to illustrate the above formula.

Say a life insurance firm receives 1,000 claims in the period of one year.

  • It accepts 971 claims and pays them the sum assured.
  • It rejects 29 claims.
  • The Claim Settlement Ratio (971/1000) = 97.1%

Higher the percentage more is the likelihood that a policyholder will see his or her claim accepted when filed.

Another important reflection of this ratio is on the company’s finances. High ratios tell a prospective life insurance customer that a company’s finances are secure since they are willing to pay the claim amount to so many customers.

It also shows that insurance companies care for the customer’s loved ones and attend them well during trying times. And, Aegon Life ensures their claims and other requests are handled well.

Ever since theycommenced operations in 2008, Aegon Life has grown, and today they are one of India’s top five life insurance companies that settles claims per individual.So, the aspect that has stayed the same all this time is – they deliver what they promise.