PARAMETERS TO CHOOSE A LIFE INSURANCE

COMPANY IN INDIA
Claim settlement ratio

Claim settlement ratio (CSR) is simply the percentage of claims settled by an

insurance company against total claims received in a given year. A high CSR shows
that it’s easier to settle claims with the company. Lot of weightage is given to claim
settlement ratio to assess the customer friendliness of life insurance companies.
Persistency ratio

Persistency, the ability of customers to stay with the insurance company through
regular life insurance policy renewal, is one of the pain points in the industry. The
persistency ratio is the ratio of total policyholders to those that have renewed their
policy with the insurance company.
Persistency ratio of life insurance companies is measured at intervals of 13, 25, 37
and 61 months by the IRDAI. A high persistency ratio shows that customers are
satisfied with the services and performance of the insurance company. It is a
measure of trust that the insurance company has gained from customers.
Solvency ratio

Solvency ratio in simple terms is the financial situation of the insurance company.
The IRDAI mandates that insurance companies maintain a solvency ratio of 150% to
shield itself from the risk of bankruptcy.
The best life insurance company in India will have a high solvency ratio because it
indicates that the company has enough assets and cash flow to meet its liabilities. In
other words, it has enough money to settle claims even if the business sees a
downturn.
Incurred claims ratio

Every year the Insurance Regulatory and Development Authority of India (IRDAI)
publishes the incurred claims ratio (ICR) data for all life insurance companies. ICR
indicates the insurance company’s ability to pay claims. It is calculated as a
percentage of the value of claims paid against the total amount of premium collected
in a given year.
Commission expense ratio

Insurers have to deal with expenses related to acquiring and underwriting insurance
policies including commissions for insurance agents, advertising, employee wages,
etc. The commission expense ratio is the percentage of expenses made by the
insurance company against the net premium earned in a given period.
A higher expense ratio directly increases the premium paid by the customer. A lower
expense ratio is a good sign for an insurance company. With the introduction of
online plans such as that facilitates online buying, tracking and updating, insurers
have been able to bring down costs of insurance premium due to the reduction of
commission expense ratio.
Customer service

To evaluate the quality of customer service can be tricky before you buy your life
insurance policy, however a few interactions with the company’s customer support
and some due diligence (online and offline) will give you a fair view of the quality of
customer service.
Sometimes judging a company’s customer support service can be purely subjective.
One may have a bad experience with a company representative and that may
influence your decisions. But don’t assess a company in just one single aspect or a
single interaction and try to get a holistic view. While searching online for reviews for
any life insurance company, you’ll mostly find negative reviews by disgruntled
customers but if you see a pattern in their complaints, it should raise a red flag. For
instance, if most of the customers are complaining about long delays or high
rejection of claims, it may be true.

loss ratio -  and combined ratio are used to measure the profitability of

an insurance company. The loss ratio measures the total incurred losses
in relation to the total collected insurance premiums,

combined ratio measures the incurred losses and expenses in relation to

the total collected premiums.

Claim rejection ratio

Cost ratio
Growth
Market share in terms of sum assured
Website traffic analysis is the process of collecting and interpreting key
data points that describe the web traffic to and from your site. ... Web
traffic analysis breaks down data using specific metrics to organize that
data and help you understand: Who's visiting your site

 Easy navigation

 Trendy, intuitive design and user experience

 Relevant, authoritative website content

 Product visuals and descriptions

 Social media as an extension of the business website

 Company blog


 PARAMETERS SBI LIFE INSURANCE HDFC ERGO GENERAL
(Functional) INSURANCE

Claim settlement ratio

96.76% 92%

Awarded as 'Life
Insurance Company of
the Year' in 2016. The
Claim settlement ratio of
SBI Life Insurance
Company for F.Y 2017-18
is 96.76%.

Persistency ratio The company's 13th HDFC Life reported an

month persistency stood improvement in the
at 86.14% in FY20 as individual 13th month
compared to 85.07% in and 61st month
FY19. Its 61st persistency ratios
month persistency was to 88% and 54%,
at 59.90% in FY20 as respectively, in
against 57.23% in FY19. FY2020 from 84% and
51%, respectively, in
FY2019.
Solvency ratio 2.13 2.03

Incurred claims ratio Rs 689 crores has 62%

been paid as the claim amount The Incurred Claim
against 18913 claims reported
in the FY 2018-19 by SBI
Ratio for HDFC
Life Insurance Company Ergo for FY 2018-19
is 62%.

Customer service Customer care toll free number 24 Customer care toll free
hour service for any complaints number 24 hour service for

1800 267 022

any complaints

9090 6234 6234

Cash profit margin = 2.60 Cash profit margin = 3.53
Cash profit margin

Cost Ratio  Total Cost ratio has decreased

to 10.0% in 9M FY 2020, from
11.0% in 9M FY ...

Growth
THE COMPARISON

SBI LIFE INSURANCE HDFC ERGO GENERAL

INSURANCE

1.) WEBSITE 1.) WEBSITE

 Navigation;-The website has a global  Navigation:-A series of icons

navigation design which makes it representing different products
easier to move across different are available for obtaining a
menus related to products and quote.
services.

 Effectiveness: High. The users find it  Effectiveness: Moderate. Though

easy to interact and avail services. the website is interactive still user
satisfaction rate is competitively
low.

 Website Digital Certificate:-The

website is digitally encrypted with  Website Digital Certificate:-SSL
SSL certificate. encryption is absent

 Website Security:-Secured with

appropriate Web Application  Website Security:-It lacks SSL
Firewall certification and WAF
(WAF).

 Responsiveness:- CSS3 and  Responsiveness:- CSS3 and

Javascript enabled for making Javascript enabled for making
content readable and browser content readable and browser
friendly for a better user experience. friendly for a better user
experience.

 Web Credibility:- The website does

fairly well in this aspect, however for  Web Credibility:- The web-page
a better user experience and is overly filled with wordings
convertibility there is a need of which makes it a bit difficult to
customer based experiences and easily comprehend the
 better references to link the products information given.A better
and services. navigation bar is also required.

 SEO Optimization:- For gaining

organic traffic it is impertinent.The
site has sufficient no.of  SEO Optimization:-There is a
backlinks,internal links and it scores need of more internal links and a
a 87 of On page SEO better navigation menu with
shortened URLs to make it user
score.  friendly.SEO score 78

 Turnaround Time:- 3 seconds

 Turnaround Time:- 4 secs

 Bounce Rate:The bounce rate of the

website is 13.6%
 Bounce Rate:- The bounce rate is
16.7%

 Typography:- Enabled on
Images,Icons and other content
 Typography:- Enabled on
Images,Icons and other content

 Breadcrumb Navigation: Enabled for

detection by search engines
 Breadcrumb Navigation: Enabled
for detection by search engines.

2.) SOCIAL MEDIA PRESENCE 2.) SOCIAL MEDIA PRESENCE

 Applause Rate:- 153,000  Facebook  Applause Rate:- 144,000

followers followers.Applause rate is 68%.
The applause rate for Facebook is LinkedIn followers is
78%,LinkedIn followers is 34408 12,020.Applause rate is 49%.
and the rate is 67%.

 Audience Retention:- High  Audience Retention:- Fair

 Click Through Rate:- Moderate  Click Through Rate:- It is

 conversion on Facebook  and Fair.The Facebook and Linkedin
Linkedin pages.The CTR is averaged CTR is averaged around 48%.
at 57%.(Google Analytics) (Google Analytics).

 Bounce Rate:- It is low.The averaged  Bounce Rate:- It is low.The

across social media handles rate is averaged across social media
13%. handles rate is 18%

 Conversion Rate:- High.  Conversion Rate:- Moderate.

 Average Engagement Rate:- Fair  Average Engagement Rate:-

Moderate

 Audience Growth Rate:- It is

averaged at 22% across social media  Audience Growth Rate:- It is
handles.(Google Analytics). averaged at 19% across social
media handles.(Google Analytics)

 Amplification Rate:- Ratio is 0.0522

 Amplification Rate:- Ratio is
0.0841

 Virality Rate:- Enagagement is high.

 Virality Rate:- Enagagement is

high.

 Customer Testimonials:- There are

lot of  positive customer feedbacks.
 Customer Testimonials:- There
are lot of  positive customer
feedbacks.

3.) MOBILE APPLICATION 3.) MOBILE APPLICATION

 Memory Consumption:- It
 Memory Consumption:-It consumes consumes about 19MB
about 22MB.
  Jitters:The loading time is 9.5
 Jitters:The loading time is 10 seconds 
seconds and some internal attributes
increase redundancy

 Packet Loss:- It resends within

5.7 seconds.
 Packet Loss:- It resends within 4.2
seconds.
 Network Speed:- Fair

 Network Speed:- Fair

 App Start Up- The time taken is
3.4 seconds.

 App Start Up- The time taken is 3.7

seconds.
 Server Down Time:- 8.9 seconds

 Server Down Time:- 8.3 seconds

 Hierarchy: The design is user
friendly and it has a set of
navigating menus and scrolls that
 Hierarchy: The design is user help in getting all the necessary
friendly and it has a set of navigating information.
menus and scrolls that help in getting
all the necessary information.

 User Control:- It has various drop

down menus and horizontal slides
to enable easy navigation.

 User Control:- It has various drop

down menus and horizontal slides to
enable easy navigation.  Accessibility:- It is quite user
friendly

 Accessibility:- It is quite user

friendly  Visual Design:- Enriched with an
attractive colour scheme and easy
to use icons,slidebars and a
picture in the homepage.
 Visual Design:- Enriched with an
attractive colour scheme and easy use
icons,slidebars and a picture in the
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