Percentage of gross incurred claims during the reporting period relative to gross earned premiums during the same reporting period.
Incurred Claims Ratio (FP8478)
Calculation:
- Reporting Format Decimal
- Metric Type Metric
- Metric Level Product/Service, Organization
- IRIS Metric Citation IRIS, 2021. Producer Price Premium (PI1568). v5.2.
Footnote
Organizations should footnote all assumptions used.
Usage Guidance
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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).
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Incurred claims ratios should not be compared across different product types or at different stages of a product’s life cycle.
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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/).
Impact Categories & Themes
SDG Goals & Targets
No Poverty
- SDG Target 1.5
Metric History
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June 2022 - IRIS v5.3 Released (current version)
Immaterial change. Minor revisions to definition and usage guidance for clarity.
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January 2020 - IRIS v5.1 Released
No change.
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May 2019 - IRIS v5.0 Released
No change.
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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.
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March 2014 - IRIS v3.0 Released
New metric. Incurred Claims Ratio (FP8478) was developed via the MicroInsurance Network.