An Analytical Study of Financial Soundness and Health of Selected Health Insurance Companies in India

Abstract

Due to the Covid-19 situation, all the people of our country started to buy more health insurance policies which improve the performance of health insurance companies. Insurance companies are in the core business of managing the risk of individuals and corporations. The Indian industry needs a deep analysis of the various factors affecting its financial performances. So for analysing the working of an insurance company, different financial indicators are well explained in the CARAMEL model. So, the main objectives of the research paper is to study, in detail about CARAMEL Model framework with reference to Health Insurance Companies and to analyze the financial performance and Soundness of health insurance companies with the help of CARAMEL Model and with the help of F-test and T-test. After the research study, researcher has concluded that financial Soundness and health of HDFC ERGO health insurance Co. Ltd is good because Earnings/Profitability Ratio of that particular company is well so, if investors or stakeholders want to invest or purchase health insurance product so they can purchase from the HDFC ERGO health insurance Co. Here in the case of re-insurance, management soundness, and earnings/ profitability, H0 (Null) hypothesis is fails to accept it means there is a significant difference in the ratios of selected companies during the study period. It is also concluded that the performance of HDFC ERGO Health Insurance Company Ltd is very good During the Study period according to CARAMEL model ratio.