Claim Settlement Ratio (CSR) is a metric that indicates the percentage of claims that an insurance provider settles in a year out of the total claims received. It is a measure of the insurers credibility and reliability in paying the sum assured to the policyholder or nominee. The CSR is calculated by dividing the total number of claims settled by the total number of claims received in a financial year and multiplying the result by 100. For example, if an insurance company settled 9600 claims out of 10,000 claims filed in a year, its CSR for that year would be 96% .
The CSR is an important factor to consider when choosing an insurance policy, but it should not be the only factor. Other factors to consider include the insurers financial stability, customer service, policy features, and premium rates.
In summary, the CSR is a metric that measures the percentage of claims settled by an insurance provider in a year out of the total claims received. It is an important factor to consider when choosing an insurance policy, but it should not be the only factor.
