How we zeroed in on the country's best Insurers
As per the Insurance Regulatoryand Development Authority annual report, India is ranked 11 among 88 countriesin the life insurance business. India's share in the global life insurance marketwas 2.08 percent in 2014. The share of non-life insurance premium was just 0.69percent; India ranked 20 among non-life insurance markets.
In the first decade ofinsurance liberalization, the sector reported a consistent increase ininsurance penetration from 2.71 percent in 2001 to 5.20 percent in 2009.However, since then, it has been declining, and reached 3.3 per cent in 2014.We still are far from understanding and adopting the concept of insurance.
To encourage insurers to keepserving the population at large, we decided to honor the best life insurancecompany, the best general insurance company and the best health insurancecompany based on five broad parameters. PolicyBazaar is our knowledge partnerfor the insurance category.
The parameters along withsub-parameters and weightages are given below. Scores for each insurer werecalculated according to the weightages. The insurer with the highest score wasthe winner.
Health Insurance
Customer service &satisfaction (30%)
Percentage of claims settled(30 days);
No. of claims complaints per10,000 claims registered;
Percentage of grievancesresolved during 2014-15
Business Growth (25%)
Growth in retail healthinsurance premium
Financial strength, prudence& performance (20%)
Solvency margin ratio;incurred claims ratio; net profit ratio
Product Strength (20%)
Product feature ratings; no.of new products approved
Regulatory Compliance (5%)
No. of penalties imposed byIRDAI
Life Insurance
Customer Service &Satisfaction (30%)
Percentage of claims paid(individual/death);% of claims rejected (individual/death); no. of claimscomplaints per 10,000 claims registered; % of grievances resolved during2014-15
Size & Scale (25%)
Percentage growth in newbusiness market share;
Percentage increase in AUM;new business premium (including single premium)
Financial Strength, Prudence& Performance (20%)
Operating cost to 1st-yearpremium; Incurred claims ratio; Net profit ratio
Product Strength (20%)
Persistency Ratio (based onpolicy count)
Regulatory Compliance (5%)
No. of penalties from IRDAI
General Insurance
Customer Service &Satisfaction (30%)
Percentage of claims settled(90 days); No. of claims complaints per 10,000 claims registered;
Percentage of grievancesresolved during 2014-15
Product Strength (25%)
Motor insurance net premium tototal net premium; no. of new products approved
Financial Strength, Prudence& Performance (20%)
Solvency margin ratio;Incurred claims ratio; net profit ratio Business Growth (20%)
Gross direct premium (within& outside India); net premium growth
Regulatory Compliance (5%)
No. of penalties imposed byIRDAI
LIFE INSURANCE CORPORATION OF INDIA
Best Life Insurer
It is the largest insurer inIndia with asset value of Rs 17, 86,313 crore and total life fund of Rs 13,59,829 crore as on March 31, 2015. It is known for offering diverse productssuch as traditional plans, pension plans and group schemes. On the basis oftotal premium income, its market share decreased from 75.39 per cent in 2013-14to 73.05 per cent in 2014-15. But it still remains the market leader by a widemargin. It had a claim settlement ratio of as high as 98.19 per cent during2014-15 as against 89.40 per cent for private insurers. This is what sets itapart from others.
"We believe that the success of any insurerdepends on fulfilling the promises made. This is where LIC trumps. Weconcentrate on delivering on our promises and this is reflected in our claimsettlement" Shiv Prabhat, Executive Director, Micro Insurance, LIC
STAR HEALTH ANDALLIED INSURANCE CO. LTD.
Best Health Insurer
Star Health and Allied Insurance Co. Ltd. started operations in 2006. It is India'sfirst stand-alone health insurance company with core focus on health insurance,overseas mediclaim and personal accident. Star Health expanded its businesswith an increase in gross direct premium collections from Rs 1,091 core in2013-14 to Rs 1,469 crore in 2014-15. It became the first insurance company tolaunch a special policy for people suffering from cardiac ailments. Likewise,it has special policies for HIV and diabetic patients. Star Health has a visionto become the largest and most preferred health insurance company in India andto provide financial security for health care management.
"I have confidence that the health insuranceindustry will continue to see unabated growth due to prohibitivehospitalization costs. Further, with the Indian economy gaining momentum, moreand more people will be able to avail of health insurance policies" V. Jagannathan, CMD,Star Health
NEW INDIA INSURANCE LTD
Best General Insurer
New India AssuranceCo Ltd is a government owned general insurer operating in 28 countries andheadquartered in Mumbai. It claims to have over 170 products catering to almostall segments of the general insurance business, including petrochemical/oil& energy assets, power & steel plants, aviation fleets, satellites,large projects (including in infrastructure) and small and medium enterprises.
It has been expanding fast withgross premium income (in India) of Rs 13,209 crore in 2014-15 as against Rs11,540 crore in 2013-14. Its market share increased to 15.60 per cent from14.88 per cent during the period. It is the first Indian non-life company toreach Rs 16,050 crore gross premium. In 2014-15, it recorded the highest profitin India among all general insurers. It has presence across India through 2,097offices, including more than 1,041 micro offices. It has 19,000 employees andaround 50,000 tied agents with over 170 products catering to varied customers.
