KPI Benchmarks : New Policy Issue Cycle Time (Life)
- Benchmark Range 29 - 61
- Benchmark Average 43
- Benchmark Sample Size (n) 20
* Is High or Low Best: Lower is Better
Download a Sample New Policy Issue Cycle Time (Life)
KPI Details : New Policy Issue Cycle Time (Life)
Life insurance New Policy Issue Cycle Time measures the average amount of time required for a policyholder's coverage to become active following the submission of an insurance application. Particularly for life insurance policies, there are several steps that must be completed prior to policy issuance, including application data input and review (i.e., application processing), underwriting review, policyholder onboarding and quality assurance/compliance are intermediate steps within the new business process. The main driver of relatively high policy issue cycle times is poor inbound data quality - unclear insurance applications, data input errors, underwriting rework and missing policyholder information can significantly increase the time required to onboard a new policyholder. This is critical from a customer experience perspective because, in many cases, the customer may be working with various insurers simultaneously to gain coverage - long cycle times may decrease the likelihood that the applicant will be converted to a paying policyholder.
KPI Best Practices : New Policy Issue Cycle Time (Life)
- Assign complex applications to more experienced underwriters
- Use web-based applications with valid data inputs to ensure forms contain necessary information
- Perform periodic underwriting rule audits
KPI Calculation Instructions New Policy Issue Cycle Time (Life)?
The calendar dates of two events are used to derive this KPI: (1) the date that the policyholder originally submitted their insurance application, and (2) the date on which the policyholder’s first premium bill was made available for payment. Include application submitted both manually (on paper) or through the internet in this calculation. The policyholder’s first premium bill is typically made available for payment following the selection, formal approval (i.e., underwriting) and acceptance of insurance coverage. Include only life insurance policies in this calculation.
KPI Formula :
(Sum of New Life Policy Issue Cycle Times) / Total Number of New Life Policies Issued