Higher incurred claim ratio means higher the chances of paying your health insurance claim at the time of medical emergencies. The ratio, in question here, signifies the overall health condition of the insurer. For instance, an insurer which has 98 per cent incurred claim ratio has higher chance of paying your health insurance claim than an insurer which has 90 per cent. Therefore, 98 per cent incurred claim ratio signifies that the insurer spent on claim settlement the same percentage of the actual premium earned during a particular period and the insurer is only earning a profit of 2 per cent.