What is Insurance?
Insurance is a means to manage loss through which responsibility for a risk is transferred to another party in exchange for payment before the loss. Insurance premiums are based on the insurers pooling of similar risks, occurrences that can be estimated using statistical modeling (actuarial analysis). An insurance company earns revenue from premiums, as well as the investment of those premiums. Insurance can be purchased by individuals for life, health, property and liability losses. Businesses purchase insurance to cover liability, property, business and executive health and life risks, though other specific policies purchased depend on the risks faced by the particular business. Insurance can be purchased directly from a company, through captive agents working for a single firm or through independent agents who sell products from multiple insurance providers.
Claim Settlement Cycle Time (P&C)
The average amount of time (measured in calendar days) required to settle a property and casualty (P&C) insurance claim, from the time the claim is reported (i.e., first notice of loss, or F...
KPI Type : Service
Formula : (Sum of P&C Claims Settlement Cycle Times) / Total Number of P&C Claims Settled
KPI Benchmark Range : 7.5-34.4
A typical insurance company, regardless of type or size, is composed of several common sub-functions, or teams, that work together to provide individual and/or commercial clients with insurance coverage and, in some cases, investment products and services. Browse our Insurance organization chart page to learn about the roles and responsibilities of each major function. Then, download our org chart template (PDF, Visio, PPT) to further understand the insurance organizational structure, and support improvement efforts within insurance operations.
Check out our insurance best practices page to view selected descriptions of work methods that have been proven to produce better results (as compared to other, similar methods). Want more? Download our Insurance best practices guide, which provides a healthy selection of valuable best practices that can be incorporated to improve insurance operations. There might not be only one "best" way to perform every task. However, there is always a "better" way.