Financial Ratios | Claims Ratio Explained | How to Tell If an Insurance Company Can Pay Claims

Описание: Welcome to Insurance World TV! This video, part two of our series on financial ratios, explains how to calculate and interpret the claims ratio, a key indicator of an insurance company's financial health. We detail where to find data and provide an example calculation, showing how a 70% claims ratio based on KES 2 billion in net earned premiums and KES 1.4 billion in net incurred claims impacts an insurer's financial stability and claim settlement capabilities within the insurance industry. This practical guide is essential for understanding claims management and navigating insurance claims.

In this video, we explain the Claims Ratio, also known as the Loss Ratio, and why it is one of the most important financial indicators in the insurance industry. If you’ve ever wondered: How to tell if an insurance company can actually pay claims, How regulators assess insurer financial stability, How corporate clients and procurement teams evaluate insurers, What a “good” or “bad” claims ratio looks like, then this video is for you. #claimsratio #lossratio

As part of our continuing series on Financial Ratios for Insurance Companies, we break down:
What the claims ratio means in simple terms
Why it matters for the financial stability of an insurance company
Where to find reliable claims ratio data in Kenya
How to calculate the claims ratio step by step
How to interpret the results to make informed decisions

We also explain how the claims ratio fits into the broader insurance framework alongside Risk-Based Capital (RBC) and IFRS 17, and why it is closely monitored by the Insurance Regulatory Authority (IRA).

This video is especially useful for:
Corporate and institutional insurance buyers
Procurement and risk managers
Insurance professionals and students
Brokers, regulators, and policyholders

📌 This is Part 2 of our Financial Ratios series on Insurance World TV.

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