Percentage of gross incurred claims during the reporting period relative to gross earned premiums during the same reporting period.
Organizations should footnote all assumptions used.
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).
Incurred claims ratios should not be compared across different product types or at different stages of a product’s life cycle.
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/).
June 2022 - IRIS v5.3 Released (current version)
Immaterial change. Minor revisions to definition and usage guidance for clarity.
January 2020 - IRIS v5.1 Released
No change.
May 2019 - IRIS v5.0 Released
No change.
March 2016 - IRIS v4.0 Released
Immaterial change. Minor revision to definition language in order to align consistency of metric with catalog's structure and style.
March 2014 - IRIS v3.0 Released
New metric. Incurred Claims Ratio (FP8478) was developed via the MicroInsurance Network.
IRIS Metrics Work Better in Sets
To use IRIS metrics—and the resulting data—to understand impact performance, IRIS metrics should be used and analyzed in generally accepted sets and according to well-defined objectives. IRIS+ gives you access to generally accepted Core Metrics Sets aligned to common Impact Themes and Sustainable Development Goals (SDGs).