Insurance buyers usually start with the premium, sum insured and list of benefits. Yet some of the most revealing numbers sit deeper in an insurer’s financial disclosures, and recent 2026 figures show why they deserve a closer look.
For example, General Insurance Corporation of India (GIC Re) reported a solvency ratio of 432% in Q1 FY2026-27, up from 421% at the end of FY2025-26. The figure indicates a substantial capital buffer relative to its regulatory requirement.
At the other end of the spectrum, The New India Assurance Company reported a combined ratio of about 121% in Q1 FY2026-27. A ratio above 100% means claims and operating costs exceeded premiums earned from underwriting during that period.
Neither number, by itself, tells you whether you should buy or avoid a policy.
What they do is give you a starting point for asking better questions.
Why These Numbers Matter Before You Buy Insurance
Insurance is a promise that may need to be fulfilled years after you purchase the policy.
A term insurance policy could remain in force for 20 or 30 years. A health insurance policy may need to respond to a large hospitalisation claim several years from now. Even a motor policy depends on the insurer having the operational and financial capacity to process claims when an accident occurs.
That makes the insurer’s financial position relevant.
IRDAI requires insurers to maintain a control level of solvency of 1.50 times. In other words, an insurer is expected to maintain available solvency resources at least 1.5 times the required solvency margin.
But regulatory compliance is only the starting point.
A policy buyer can go one step further by looking at the insurer’s recent financial and claims indicators and, more importantly, at their trend over several reporting periods.
A single number can be misleading. A pattern is usually more informative.
1. Solvency Ratio: Can the Insurer Absorb Financial Stress?
The solvency ratio is probably the most important of the three from a financial-strength perspective.
At a basic level, it compares an insurer’s available solvency margin with its required solvency margin.
Think of it as a financial cushion.
If an insurer has a solvency ratio of 150%, it is meeting the regulatory minimum. If it has a ratio of 300%, its available solvency margin is substantially higher relative to the requirement.
A Live 2026 Example: GIC Re
GIC Re reported a 432% solvency ratio for Q1 FY2026-27, compared with 421% for FY2025-26 and 370% for FY2024-25. Its August 2026 investor presentation described the capital position as strong.
The important point is not that 432% makes GIC Re a “better insurer” for every customer.
GIC Re is a reinsurer, not the company most retail customers would directly approach for a typical health or motor policy.
The example demonstrates something more useful: solvency ratios can vary considerably between insurers, and the number needs to be interpreted against the regulatory floor and the nature of the business.
What Should a Policy Buyer Look for?
| Solvency Ratio | How to Read it |
| Below 150% | Red flag; below the regulatory control level |
| 150%-175% | Meets the requirement, but relatively limited cushion |
| 175%-250% | Generally more comfortable |
| Above 250% | Stronger capital buffer, subject to business context |
| 400%+ | Very substantial cushion, but not automatically a reason to choose the insurer |
Note: These are due-diligence bands, not IRDAI-defined ratings. The regulatory threshold is 150%; the other ranges are practical screening bands rather than official classifications.
A ratio just above 150% should not automatically disqualify an insurer. Likewise, a ratio of 400% should not persuade you to ignore exclusions, pricing, complaints or claims experience.
The more useful question is: Is the insurer comfortably above the regulatory floor, and has its solvency position remained reasonably stable?
2. Combined Ratio: Is the Insurer Making the Underwriting Economics Work?
The combined ratio is mainly relevant to general insurance and reinsurance. It combines the insurer’s claims and expenses relative to the premium it earns.
In simplified terms:
Combined Ratio = Claims Ratio + Expense Ratio
A combined ratio of:
- Below 100% generally indicates an underwriting profit.
- Exactly 100% means the insurer is broadly breaking even on underwriting.
- Above 100% indicates an underwriting loss.
This does not necessarily mean the insurer is losing money overall. An insurer can earn investment income that offsets an underwriting loss.
But persistently high combined ratios can tell you that the core insurance business is under pressure.
New India Assurance: A Useful 2026 Example
New India Assurance reported a combined ratio of around 121% in Q1 FY2026-27, according to its first-quarter results coverage.
That means the company’s claims and expenses were significantly higher than the premium generated from underwriting during that period.
However, this is exactly where a buyer needs to avoid simplistic conclusions.
A quarterly combined ratio is not a solvency verdict.
General insurers can experience temporary deterioration because of catastrophe losses, claims inflation, changes in product mix, pricing pressure or one-off expenses. New India’s financial disclosures have also highlighted the effect of wage-related provisions on its combined operating ratio in FY2025-26.
So, instead of asking:
“Is 121% bad?”
Ask:
“Has this insurer’s combined ratio remained above 100% for several years, and why?”
That is a much more useful question.
A Practical Combined-Ratio Benchmark
| Combined Ratio | Practical Reading |
| Below 95% | Strong underwriting performance |
| 95%-100% | Generally healthy |
| 100%-105% | Watch the trend |
| 105%-110% | Underwriting pressure |
| Above 110% | Significant concern if persistent |
| Above 120% | Strong warning signal, particularly if recurring |
Note: These are practical screening thresholds rather than regulatory classifications.
The type of insurance also matters. A specialist insurer exposed to catastrophe-heavy or volatile lines can naturally experience greater fluctuations than an insurer with a different portfolio.
That is why one year’s number should never be treated as a verdict.
3. Claim Settlement Ratio: Does the Insurer Actually Settle Claims?
The claim settlement ratio is perhaps the most familiar number to consumers.
It broadly tells you how many claims an insurer settled compared with the claims it received, although the exact definition and reporting period depend on the insurance segment and the data being used.
For life insurance, one commonly reported measure is the percentage of individual death claims settled within 30 days.
IRDAI’s Handbook on Indian Insurance Statistics for FY2023-24 showed an overall 96.82% claim settlement ratio for individual death claims settled within 30 days, while private life insurers recorded about 99%.
That is useful information. But there is an important catch. A 99% claim settlement ratio does not mean every claim will be paid. The ratio is an aggregate statistic.
It does not tell you:
- Whether your policy has a relevant exclusion
- Whether the policyholder disclosed medical information accurately
- How large the rejected claims were
- Why particular claims were rejected
- Whether claims were settled quickly or after prolonged follow-up
- Whether the ratio is based on claims by number or by benefit amount
This is why claim settlement ratio by number and claim settlement ratio by amount should not be treated as interchangeable.
An insurer could settle a very high proportion of smaller claims while the percentage of total benefit amount paid looks different.
What Should Count as Healthy?
There is no single IRDAI rule saying that a particular CSR percentage makes an insurer “good”.
For practical comparison, however:
| Claim Settlement Ratio | Practical Reading |
| 99%+ | Very strong, but investigate methodology |
| 97%-99% | Generally strong |
| 95%-97% | Reasonable, but examine the trend |
| 90%-95% | Requires closer scrutiny |
| Below 90% | Significant reason to investigate |
Note: These are screening bands, not official regulatory ratings.
And one more rule matters: compare like with like. Do not compare a life insurer’s death-claim CSR with a health insurer’s claim settlement data and conclude that one is “better”.
The claims, products, reporting methodology and risk pools are different.
The Three Numbers Work Better Together
The real value comes from reading these indicators together.
Imagine an insurer with:
- Solvency ratio: 165%
- Combined ratio: 118%
- Claim settlement ratio: 98%
The 98% CSR may initially look reassuring.
But the other two figures tell a more complicated story.
The insurer is above the regulatory solvency requirement, but with a relatively modest cushion. Its underwriting performance is also under pressure.
Now consider another insurer:
- Solvency Ratio: 250%
- Combined Ratio: 98%
- Claim Settlement Ratio: 97%
The second insurer does not necessarily have a “better” policy.
But its financial and underwriting indicators may give a buyer greater comfort.
This is why ratios should be used as filters, not as purchase decisions.
Where Can You Find These Numbers?
You do not have to rely entirely on insurance comparison websites or social media posts to find insurer-level data.
The primary sources are available through the regulatory and corporate disclosure system.
1. IRDAI Annual Report
The IRDAI Annual Report provides a broad picture of the insurance sector, including financial performance, solvency, claims and other industry-level information.
2. IRDAI’s Insurance Statistics
IRDAI’s statistical publications provide insurer-level information across life, general and health insurance.
For claim settlement data, the Handbook on Indian Insurance Statistics is particularly useful.
For example, the FY2023-24 handbook data showed an overall 96.82% settlement rate for individual death claims within 30 days.
3. Insurer Public Disclosures
Insurers are required to make financial and regulatory disclosures available publicly.
These can include:
- Solvency information
- Financial statements
- Claims information
- Premium data
- Segment information
- Management commentary
- Regulatory forms
The insurer’s investor-relations or public-disclosure section is therefore worth checking directly.
4. NL Forms
For general and health insurers, the NL series of forms can provide detailed non-life financial and operating information.
The objective is not to read every page.
It is to locate the specific indicators relevant to the policy you are considering.
A 10-Minute Insurance Due-Diligence Routine
You do not need to become an insurance analyst before buying a policy.
Ten focused minutes can eliminate a surprising amount of uncertainty.
Minute 1-2: Identify the insurer
Start with the company, not the policy brochure.
Check:
- Is it a life, general, standalone health or specialised insurer?
- How long has it been operating?
- What type of insurance does it specialise in?
This tells you which ratios are actually relevant.
Minute 3-4: Check solvency
Find the latest solvency ratio.
Then check at least two or three previous periods if available.
Ask:
Is it comfortably above 150%?
Is the trend stable?
A single strong number is less useful if the ratio has been falling sharply.
Minute 5-6: Check the combined ratio
If you are considering a general or health insurer, check its combined ratio.
A figure below 100% is generally favourable from an underwriting perspective.
If it is above 100%, don’t immediately reject the insurer.
Look at the trend and understand what is driving it.
GIC Re’s Q1 FY2026-27 presentation, for example, reported a combined ratio of 104.88%, alongside its 432% solvency ratio. That combination shows why different metrics can tell different stories about the same insurer.
Minute 7-8: Check claims
For life insurance, look at the insurer’s claim settlement performance, preferably across multiple years.
Do not stop at the headline percentage.
Check whether the data refers to:
- Number of claims
- Benefit amount
- Claims settled within a specific period
For health and general insurance, also look at claims turnaround, outstanding claims and relevant claims-payment information.
Minute 9: Check complaints and regulatory history
This step is frequently overlooked.
A high CSR does not tell you whether customers frequently complain about:
- Delayed claims
- Mis-selling
- Poor service
- Documentation
- Cashless authorisation
- Policy administration
Look at the insurer’s grievance information and regulatory disclosures.
IRDAI’s regulatory framework is specifically intended to protect policyholders and requires insurers to maintain financial and operational standards.
Minute 10: Return to the policy document
Now go back to the policy itself.
Check:
- Exclusions
- Waiting periods
- Sub-limits
- Co-payment
- Room-rent restrictions
- Claim conditions
- Renewal terms
- Premium changes
- Free-look provisions
This is the final and most important step.
An excellent insurer cannot turn an excluded treatment into a covered one.
That is why insurer ratios should supplement policy-level due diligence, not replace it.
A Simple Benchmark Sheet
For quick comparison, a buyer can use this framework:
| Metric | What it tells you | Healthy screening zone | Red flag |
| Solvency ratio | Financial cushion | Comfortably above 150% | Below 150% |
| Combined ratio | Underwriting efficiency | Below 100% | Persistently above 110% |
| Claim settlement ratio | Claims settlement record | Generally 97%+ with consistent performance | Below 90-95%, depending on segment and methodology |
Note: These are practical screening ranges, not official IRDAI ratings.
The most important word in the table is “consistently”.
A ratio can move because insurance is a volatile business. Catastrophes, medical inflation, claims experience, pricing and changes in product mix can all affect results.
So a three-year trend can generally be more informative than one impressive quarterly number.
What These Ratios Cannot Tell You
- A strong solvency ratio does not tell you whether your policy has restrictive exclusions.
- A good combined ratio does not tell you whether your hospital is in the insurer’s cashless network.
- A high claim settlement ratio does not guarantee that your claim will be accepted.
- And a low ratio does not automatically mean an insurer is unsafe.
- Insurance is a contractual business.
- The insurer can only pay claims that fall within the policy’s terms.
The Bottom Line
Insurance buyers often spend more time comparing premiums than investigating the company standing behind the policy.
That is understandable. Premiums are easy to compare.
Financial strength and claims performance require a little more work. The lesson is not to choose the insurer with the biggest number. It is to understand what each number measures.
Use solvency to assess financial resilience. Use the combined ratio, where relevant, to understand underwriting performance. Use claim settlement data to examine claims experience. Then go back to the policy document and check whether the actual coverage fits your needs.
These numbers are one part of the decision. For a clearer understanding of the coverage proposed by an insurer or your existing policy, find insurance guides, expert reviews and portfolio analysis on MyRupia.
Disclaimer: This MyRupia article is for informational purposes only and is based on publicly available government, regulatory and industry sources. It should not be treated as investment, financial, tax, insurance, or legal advice. Information, examples, market data, and expert views mentioned in the article may change over time and should not be considered a recommendation to buy, sell, invest in, or surrender any financial product. Readers should evaluate their individual circumstances and consult a qualified financial professional before making decisions.