Published Online:June 2026
Product Name:The IUP Journal of Business Strategy
Product Type:Article
Product Code:IJBS010626
DOI:10.71329/IUPJBS/2026.23.2.5-24
Author Name:Srinivasa H T
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:5-24
The paper seeks to compare the claim ratios, financial sustainability, and operations of public and private general and health insurers in India, a developing economy. The study analyzes changes in insurance benefits and claims between FY2019 and 2023 using secondary data from six major insurance companies: three private insurers (Bajaj Allianz, Tata AIG, Shriram General Insurance) and three public insurers (National Insurance, New India Assurance, Oriental Insurance). The assessment uses various statistical methods such as independent t-tests and regression analysis, to compare claim ratios and financial results. The results show that private insurance companies consistently have lower and more stable claim ratios. But public insurers have higher and more volatile claim ratios for health and car insurance. The study also highlights the effect of the Covid-19 pandemic on the number of claims. Based on these results, the study suggests several recommendations for improving the financial safety and efficiency of public sector insurers, such as using advanced technology for processing claims, changing reinsurance methods, and rethinking risk premiums.
The general insurance sector is vital for enhancing financial stability as it helps safeguard individuals, businesses, and governments from unexpected risks. In recent years, India’s general insurance industry has experienced swift growth fueled by heightened insurance awareness, regulatory changes, digital advancements, and rising demand for financial security.