What does ICR stand for in the context of insurance?

Insurance Claim Ratio Incurred Claim Ratio Insurance Coverage Rate Incurred Coverage Ratio

How is the Incurred Claim Ratio (ICR) calculated?

Net Claims Incurred divided by Net Premiums Collected Net Premiums Collected divided by Net Claims Incurred Net Claims Incurred multiplied by Net Premiums Collected Net Premiums Collected minus Net Claims Incurred

What does an ICR of over 100% indicate about an insurance company's financial health?

The company is in a strong financial position. The company has paid out more in claims than it received in premiums. The company has a high number of new policyholders. The company has a diverse range of insurance products.

What might a very low ICR (less than 50%) suggest about an insurance company's policies?

The policies are likely to have many exclusions and be expensive. The company is experiencing rapid growth and attracting new customers. The company has a strong track record of settling claims quickly. The policies offer comprehensive coverage with minimal exclusions.

What is generally considered a healthy range for an insurance company's ICR?

Between 10% and 30% Between 30% and 50% Between 50% and 70% Between 70% and 90%