Private life insurers better claim payout ratio to 95% in FY18
BENGALURU: The life insurance industry is honouring more claims, helped by technology and better fraud management. The claims payout ratio has improved significantly, with private industry paying 95.2% of all claims in 2017-18, compared to 93.7% in the previous year, and 88.3% in 2014-15. LIC has long been paying over 98% of its claims. That continues, though it slipped marginally in 2017-18. In fiscal 2018, 21 of 23 private life insurers paid more than 90% of claims, unlike in 2014-15, when only nine did so and the majority paid out only 50-70% of claims. Claims repudiation (those rejected) by private players is also down to just under 4%, from 4.6%. Fraud management, tech, regulation help cut rejections Among the reasons for this improvement, insurers say, is that they have adopted bette...