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A study on factors influencing claims in general insurance business in India

T. Joji Rao (College of Management and Economic Studies, University of Petroleum & Energy Studies, Dehradun, India)
Krishan K. Pandey (College of Management and Economic Studies, University of Petroleum & Energy Studies, Dehradun, India)

Journal of Risk Finance

ISSN: 1526-5943

Article publication date: 17 May 2013

1894

Abstract

Purpose

The fact that complaints regarding general insurance claims are three times as numerous as those of life insurance claims suggests that claims behaviour of general insurers be investigated to minimize operating losses and ensure operational excellence. This paper seeks to address this issue.

Design/methodology/approach

Study of variance and factor analysis has been undertaken to achieve the objective of identifying factors which govern claims in general insurance business. In order to understand the dependency of claims over the sectors and segments, statistical hypothesis testing along with cross tab analysis has been conducted. The study also evaluates the relationship of these factors over the sectors and segments by running a multiple regression.

Findings

An empirical result of the study proves that there exists an association between type of sectors, i.e. public and private and segments of insurance namely fire, marine and miscellaneous. The study also suggests a claim projection model for the general insurance players.

Research limitations/implications

Exclusion of specialized players due to the reason being new entrants and in order to maintain common parlance of sectors may be a limitation to this study.

Originality/value

The study recommends that insurance players should not treat the claims settlement strategies in isolation of segments. The claims projection model as suggested in the study may prove to be extremely helpful in projecting the claims and in turn reduce the increasing underwriting losses.

Keywords

Citation

Joji Rao, T. and Pandey, K.K. (2013), "A study on factors influencing claims in general insurance business in India", Journal of Risk Finance, Vol. 14 No. 3, pp. 303-314. https://doi.org/10.1108/JRF-11-2012-0071

Publisher

:

Emerald Group Publishing Limited

Copyright © 2013, Emerald Group Publishing Limited

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