As of 1 December 2020, Indian non-life insurance companies had received claims for $1.29bn from
634,000 policyholders for COVID-19 and had settled around 479,000 amounting to $600m according to the data made available by the General Insurance Council of India.
Officials in the industry told financial daily Financial Express, “The average claim size reported for COVID-19 is $2020 for the industry, while the average claim amount settled is around $1,252.”
The industry is expecting an increase in the loss ratio in the health portfolio due to the ongoing pandemic. Insurers expect loss ratio for the retail health insurance policies to go up from current
65-70% to 80-85%.
The loss ratio is the ratio of claims incurred to earned premiums. So, if the loss ratio is 80%, then insurance companies have received a premium of INR100 ($1.36) and have paid claims of INR80 ($1.08) to the policyholder.
General insurance companies continue to witness higher claims arising from the COVID-19 though there has been a steady fall in active cases in the past few days and the likely availability of a vaccine soon could also lead to lower claims in the coming months.