Incurred Claim Ratio

byPaytm Editorial TeamNovember 10, 2025

Meaning

This ratio is a key metric in the insurance industry, indicating a company’s financial health regarding claims.

Definition

The Incurred Claim Ratio (ICR) measures the total value of claims incurred by an insurance company against the total premiums earned in a given period. It reflects the portion of premiums used to settle claims.

Calculation

ICR is calculated as: (Total Value of Claims Incurred / Total Premiums Earned) × 100.

Significance

A lower ICR generally suggests better underwriting performance and profitability for the insurer, as less premium is spent on claims.

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.