The company further said that its claim settlement ratio for the current financial year stood at 99.02%. The number shared by the firm is one of the highest in the industry.
The solvency ratio is maintained globally by insurers, and reflects the financial health of the company. “At 581%, Bajaj Allianz Life’s solvency ratio reflects the insurer’s ability to meet short-term and long-term liabilities,” it said in a press release.
The key parameters shared by Bajaj Allianz strengthen its position in the market, and demonstrate the financial strength of the insurer to retain its customers. life goals Safe.
“Customer First Philosophy is now our North Star, and through our transformational journey over the past five years we have taken every step to create simplicity and efficiency to deliver on our promise made to our customers. Our Solvency Ratio and Claims The settlement ratio is a testimony to this commitment. We will continue to invest in this journey to become the life insurer of choice to enable life goals of many more customers India,” Told Tarun ChughMD & CEO, Bajaj Allianz Life Insurance.
As per IRDA guidelines, all companies are required to maintain a solvency ratio of 150% to reduce the risk of bankruptcy. Solvency ratio helps to identify whether the company has sufficient financial buffer to settle all claims in extreme situations. Therefore, it is a good indicator of an insurance company’s financial ability to meet both its short-term and long-term liabilities.
Solvency margin is calculated by comparing a company’s liabilities with its current assets. To put it another way, the solvency ratio is calculated by dividing a company’s after-tax operating income by its debt liabilities.
Solvency Ratio = (Net Income + Depreciation) / Liabilities
The solvency ratio defines how good or bad the financial position of an insurance company is at defined solvency criteria.