The claim settlement ratio of car insurance is a vital metric that reflects an insurance company's efficiency in settling claims. It represents the percentage of claims settled by the insurer against the total number of claims received during a specific period. A higher car claim settlement ratio indicates a higher probability of your claim being settled promptly and satisfactorily.
Know how is a claim settlement ratio calculated for car insurance
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Claim Settlement Ratios CSR = (total number of claims settled in a year/total number of claims filed in a year) X 100
For example, if an insurance company settles 9000 claims out of a total of 10,000 claims, its CSR will be 90 percent.