Cost per Application (Life)

Cost per Application (Life)

KPI Details

Two values are used to calculate this KPI: (1) the total cost of processing and underwriting life insurance applications over a certain period of time, and (2) the total number of life insurance applications received over the same time period. The total cost of processing and underwriting should include labor, technology and other overhead costs related to tasks that occur between application reception and policy issuance, including application intake, application data validation and entry, quote generation, actuarial analysis and underwriting. All life insurance applications should be included in the denominator for this calculation, regardless of whether or not they were approved by the underwriting function.

KPI Definition

The total cost (labor, technology and other overhead) of life insurance application intake, processing, data entry, quote generation and underwriting divided by the total number of life applications received over the same period of time.

KPI Best Practices

• Use up to date underwriting models and rules to reduce cycle times for simpler applications
• Use web-based applications with valid data inputs to ensure forms contain necessary information
• Assign more complex applications to experienced underwriters to minimize rework

KPI Calculation Instructions Cost per Application (Life)?

Two values are used to calculate this KPI: (1) the total cost of processing and underwriting life insurance applications over a certain period of time, and (2) the total number of life insurance applications received over the same time period. The total cost of processing and underwriting should include labor, technology and other overhead costs related to tasks that occur between application reception and policy issuance, including application intake, application data validation and entry, quote generation, actuarial analysis and underwriting. All life insurance applications should be included in the denominator for this calculation, regardless of whether or not they were approved by the underwriting function.

KPI Formula :

Total Life Insurance Application Processing and Underwriting Expense / Number of Life Insurance Applications Received