Percentage of gross incurred claims during the reporting period relative to gross earned premiums during the same reporting period.
Incurred Claims Ratio (FP8478)
- Reporting Format Decimal
- Metric Type Metric
- Metric Level Product/Service, Organization
- IRIS Metric Citation IRIS, 2021. Producer Price Premium (PI1568). v5.2.
Footnote
Organizations should footnote all assumptions used.
Usage Guidance
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This metric is intended to capture the value of products for the insured. As an example, a 70% incurred claims ratio means that for every USD 100 of premium earned in a given accounting period, USD 70 is paid back to insured in the form of benefits (claims).
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Incurred claims ratios should not be compared across different product types or at different stages of a product’s life cycle.
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For more detail and for guidance on interpretation, see the Microinsurance Network’s Social Performance Indicators for Microinsurance, p. 16 (https://www.social-protection.org/gimi/ShowRessource.action?id=5270/).
Impact Categories & Themes
SDG Goals & Targets
No Poverty
- SDG Target 1.5