Question

National Insurance Company reported a total premium collection of ₹800 crore for FY2023. During the same period, the company paid out claims amounting to ₹640 crore. What is the claims ratio, and what does it imply about the company’s underwriting performance?

A 70% – Strong risk control
B 90% – Poor pricing
C 80% – Healthy underwriting
D 60% – Low loss exposure
E 100% – Break-even underwriting
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