Why Your Insurance Might be a Math Problem
Behind every “recommended plan” is a filter nobody shows you.
Hello there!
Insurance advice usually comes in two flavours:
The agent who remembers your birthday.
The finfluencer who drops “top 5 plans” and vanishes.
Neither tells you how the filtration actually works. So, allow us.
Take health insurance. Of the companies with publicly available data, we ran 4 elimination rounds.
First, Claim Settlement Ratio: Benchmark set at 95%, against a 91% industry average. Ten companies gone.
Second, Incurred Claim Ratio. Below 60% means they’re stingy with payouts. Above 100% means they’re heading toward insolvency. We filtered for companies sitting between those two numbers.
Third, Complaints Ratio: Benchmark tougher than the industry average of 27 complaints per 1,000. More names dropped.
Fourth, Cashless Hospital Network: Minimum 10,000 hospitals, above the 9,400 industry average. Pan-India coverage isn’t negotiable when you’re in an emergency.
This brought us to recommendations based on who you actually are; family floater, chronic condition, young and looking for simplicity.
Term insurance went through a similar funnel. But here we added a filter that shows how an insurer behaves when the claim runs into crores.
A headline number can hide a lot. And here’s why this is important beyond the filtration.
A policy that looks good in a brochure becomes useless the moment you hit a room rent cap you didn’t notice.
A term plan that seemed affordable becomes your family’s biggest regret when a claim gets rejected over something you didn’t disclose at age 25.
The gap between buying insurance and being insured is wider than most people realise.
Here’s a video that connects the dots.
Finology’s Exclusive Updates
01. Finology 30 Stock Update: Premium Consumption Fortress
Finology 30’s latest stock is now available.
We picked this company because it dominates a space where new players simply cannot easily enter or catch up, right as demand from high-spending consumers is hitting record levels.
The full research report, along with the company name and Buy It Below price, is available in the Finology 30 dashboard.
02. Buy it Below Update on a Core Stock
Our research team has shared an annual update on one of our core stocks and revised the Buy it Below price due to near-term tax headwinds.
You can view it on your Finology 30 dashboard.
03. From Ticker: The “Efficiency Mode” Opportunity
With crude oil prices surging, PM Modi urged citizens to reduce fuel consumption and adopt Work From Home wherever possible.
For investors, this shift highlights businesses built for efficiency and lower physical dependency.
Here’s what to check on Ticker:
Track Asset-Light Businesses: Companies that benefit from WFH and digital operations often improve margins during such periods. Check the DuPont Analysis → Look for strong Asset Turnover.
Strong Cash Flow: When spending slows, businesses with healthy cash generation stay resilient. Use the Cash Flow tab → Find companies with strong Free Cash Flow.
Efficient businesses tend to outperform during “efficiency mode” economies.
Game Time!
How’s Your Insurance IQ?
That’s all in The Finology Letter!
Hope today’s edition felt useful and worth your time.
If it did, drop a like and comment how. Also, if you’d like us to cover more (or less) of such content, do tell. We love to get better for our people.