Understanding IRDAI Non-Life Disclosure Forms
NL-20 and NL-37 are the two primary data sources for general and standalone health insurer metrics. Here is what each form contains and the critical denominator difference that makes NWP-based and GDP-based ratios incomparable.
NL-20: Financial Indicators
NL-20 is the primary financial ratios form for non-life insurers. It contains:
- Solvency ratio — Available Solvency Margin (ASM) ÷ Required Solvency Margin (RSM). Regulatory minimum is 1.5× for all insurers.
- Combined ratio — Loss ratio + Expense ratio. The most important single-number indicator of general insurance underwriting profitability. Below 100% = profitable; above 100% = insurer is paying more in claims+expenses than it earns in premium.
- Incurred Claims Ratio (ICR) — Net claims incurred ÷ Net earned premium. Also called the "loss ratio."
- Expense ratio — Operating expenses ÷ premium. Two variants: NWP-based and GDP-based (see below).
NL-37: Claims Reconciliation
NL-37 provides a reconciliation of claims from opening balance to closing balance for the period. This form is the source for non-life claim settlement ratios. The table structure is:
| Row | Description |
|---|---|
| Claims outstanding (opening) | Claims pending at start of period |
| Claims reported | New claims received during period |
| Claims settled | Claims paid and closed during period → CSR numerator |
| Claims repudiated | Claims formally rejected |
| Claims CWOP | Closed Without Payment — includes withdrawn claims |
| Claims outstanding (closing) | Claims still pending at end of period |
The claim settlement ratio is computed as: settled ÷ (opening outstanding + reported). Claims are typically reported by segment: motor OD, motor TP, health, fire, marine cargo, marine hull, engineering, liability, and others.
The two denominator problem: NWP vs GDP
NL-20 reports expense ratios and combined ratios using two different denominator definitions. This is the most common source of confusion when comparing non-life insurer metrics.
NWP (Net Written Premium): The premium the insurer keeps after ceding reinsurance. This is the traditional denominator. NWP-based expense ratio = Management expenses ÷ Net Written Premium.
GDP (Gross Direct Premium): The total premium collected from policyholders before any reinsurance cession. IRDAI introduced this denominator in 2021 because some insurers were ceding large proportions of their premium to reinsurers, making their NWP-based expense ratios look artificially low. GDP-based ratios are harder to game.
Rule: Only compare expense ratios or combined ratios that use the same denominator. An insurer's GDP-based combined ratio is not comparable to another's NWP-based combined ratio. This platform labels which denominator is used for every metric.
NL-47: Product-wise disclosures (V2)
NL-47 contains product-level disclosures by UIN (Unique Identification Number — IRDAI's product code). It allows segment-by-segment analysis of premium, claims, and incurred ratios for every product a non-life insurer offers. With over 1,800 active product UINs in the market, this form is the source for product-level comparison.
Product-level analysis from NL-47 is on the roadmap for this platform (V2). For now, insurer-level metrics from NL-20 and NL-37 are the primary data.