INSURERS MUST REPORT CLAIMS DATA IN GREATER DETAIL FOR MORE TRANSPARENCY

If a tiered-cost structure was published by a govt authority, prices could be linked to it

- ABHISHEK BONDIA

The Insurance Broking Association of India recently published a report on general insurance claims performance across a range of metrics. The data is also broken down by line of business - health, motor, fire, etc.

The eighth edition of the report drew attention from a cross-section of society, and a member of parliament brought it to the attention of the finance minister. There have been differing views on how to interpret the report. However, it establishes the larger point - insurers need to step up their game on claims. They require nudging to include greater detail in public disclosures, which aid public discussions and help to hold them accountable.

Consider the fact that the overall claims-paid ratio of the four public general insurers slipped from 80-90% in 2022, to 40-60% in 2023. This coincided with a massive drop in the solvency ratio for three of them. Two of them even went into negative territory.