What does the 90 per cent claims approval rate signify for policyholders?

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The 90 Per Cent Claims Approval Rate Indicates a High Likelihood of Claim Acceptance for Policyholders

In 2025, insurance and takaful operators (ITOs) demonstrated a robust claim handling process, with an average approval rate of 90 per cent. This means that out of the more than one million claims processed annually across the industry, the vast majority are accepted. This high approval rate suggests a generally favourable outcome for policyholders when submitting legitimate claims that align with their policy terms.
High Volume of Approved Claims Annually

The insurance and takaful sector consistently approves over one million claims each year. This substantial volume underscores the industry's capacity to process and honour a significant number of claims, providing financial recourse for a large segment of policyholders. The consistent approval of over a million claims annually reflects the operational scale and commitment to meeting obligations.
Protection Against Arbitrary Policy Cancellation

Policyholders are protected from arbitrary actions by ITOs, as operators cannot unilaterally cancel an insurance policy or takaful certificate. Furthermore, ITOs are prohibited from terminating or refusing to renew coverage simply because a policyholder has made a claim or developed health issues after obtaining the policy. This safeguard ensures continued coverage, preventing policyholders from being penalised for utilising their insurance.
Fair Claims Management Based on Contractual Terms

ITOs are mandated to review and manage claims equitably, strictly adhering to the terms stipulated in the contract. This involves verifying that submitted claims fall within the defined scope of coverage and that the requested treatments or services are medically necessary. The review process is guided by established treatment protocols that align with current clinical practice guidelines, ensuring a consistent and objective assessment.

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What does the 90 per cent claims approval rate signify for policyholders?

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