Sectors of Focus

  • Financial Services
  • Financial Services: Microinsurance

Incurred Claims Ratio (FP8478)

Percentage of gross incurred claims during the reporting period relative to the gross earned premium during the same reporting period.
Reporting format
Metric type
Metric level
Product/Service, Organization
IRIS metric citation
IRIS, 2016. Incurred Claims Ratio (FP8478). v4.0.


Organizations should footnote all assumptions used.

Usage Guidance

  • The metric can be used to interpret the value of products to the insured. As an example, a 70 percent incurred claims ratio means that for every $100 of premium earned in a given accounting period, $70 is paid back in the form of benefits (claims).
  • Organizations should note that incurred claims ratios cannot be compared across different product types or at different stages of a product's life cycle.
  • For more detail on the ratio and for guidance on interpretation, see the Microinsurance Network's Social Performance Indicators for Microinsurance, p. 16 (