Percentage of gross incurred claims during the reporting period relative to the gross earned premium 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, 2020. Incurred Claims Ratio (FP8478). v5.1.
Footnote
Organizations should footnote all assumptions used.
Usage Guidance
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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).
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Organizations should note that incurred claims ratios cannot be compared across different product types or at different stages of a product's life cycle.
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For more detail on the ratio and for guidance on interpretation, see the Microinsurance Network's Social Performance Indicators for Microinsurance, p. 16 (http://www.microfact.org/social-performance/).
Impact Categories & Themes
SDG Goals & Targets
No Poverty
- SDG Target 1.5
Metric History
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January 2020 - IRIS v5.1 Released (current version)
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) 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).