Financial performance ratios of microinsurance
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Abstract
This article presents the financial performance ratios of microinsurance, which measure a business performance differently from financial ratios according to general financial management principles. These ratios consist of four dimensions: 1) Product value: incurred expense ratio, incurred claims ratio and net income ratio 2) Product awareness and client satisfaction: renewal ratio, coverage ratio (target customers) and growth ratio 3) Service quality: promptness of claims settlements and claims rejection ratio 4) Financial prudence: solvency ratio and liquidity ratio. The study focuses on understanding the meaning of each ratio and considering their modern according to modern management principles of holistic performance measurement based on the balanced scorecard. The objective is to enable these financial ratios to be used to effectively monitor and evaluate the sustainability of microinsurance. It is hoped that the article will be beneficial to the development of microinsurance industry in Thailand.
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