Contact: info@opsdog.com | 844-650-2888
 
Back to All Resources

4 Insurance KPIs to Measure Customer Experience

Author: Scott Baptista

Insurance is a competitive field to be in. Especially now when customers can essentially “shop-around” by analyzing the reviews, stories and comments published by previous customers. With so many companies to choose from and published pieces to influence them, how can contemporary insurance companies retain the interest of would-be and current customers? The answer involves quick, helpful and all around good service.

Here are 4 metrics every insurance company should be tracking to make sure they are meeting the growing demands of the customer.

1. Cycle Time: Coverage Offer

Customers expect things to be done immediately, especially when it involves something as important as insurance. Though some time is needed to approve an insurance policy, taking too long is not advised. As such, use the Cycle Time: Coverage Offer metric to measure the average number of calendar days required to process an insurance policy, from the time the offer for coverage is given until the time the insurance plan is approved for issue. A low value for this metric should be sought after since high values can be indicative of low productivity rates and/or an uncoordinated process flow.

2. Percentage of Insurance Applications Approved

Nobody likes their time to be wasted. It’s one thing to be meticulous and spend a lot of time making a decision on an insurance policy because something went wrong, but it’s another thing entirely if an abundance of time is spent on applications that are ultimately denied. To measure the frequency of this occurrence, use the Percentage of Insurance Applications Approved metric to measure the quality of the insurance application process. This metric is derived by dividing the number of insurance applications submitted by potential policyholders that are approved and paid (first month’s premium) by the total number of applications submitted by potential policyholders over the same period of time, as a percentage. Being able to spot applicants whose applications are unlikely to be approved EARLY on during the new business processing cycle is key to eliminating low-value work. This works both ways. Customers do not want to wait around to be told that they need to look elsewhere for coverage. Look to improve communications with potential customers, decrease the complexity of applications and establish data quality standards to move towards a high value for this KPI. Insurance applications that are processed and denied are wasteful due to lost processing expenses, dissatisfied consumers and wasted employee time and energy. The inverse value for this KPI is referred to as “Wastage Rate.”

3. Cycle Time: Claims Settlement

When a customer files an insurance claim, it usually means the unexpected has happened. People are stressed, upset and shaken up. For those reasons, insurance companies and their representatives should strive to be as accommodating as possible. To keep an eye on customer service, use the Cycle Time: Claims Settlement metric to measure the number of days required to settle an insurance claim (if it is approved), from the time the claim is reported until the time it is paid out. A high value for this metric can be an indication of poor claims processing and investigation practices such as non-standard customer communications, unclear policy guidelines, excessive approvals or under-staffing (NOTE: The Claims Processed per Claims Representative KPI can measure staffing levels against claim volumes). Look to improve the way that claims are submitted, standardize the processing workflow to keep your customers happy and move towards a lower value for this KPI.

4. SLA Adherence: Underwriting Decisions

Most every B2C company has a service level agreement (SLA) outlining standards in regards to customer service. Most of them, however, do not formally track adherence to these standards. The SLA Adherence: Underwriting Decisions measures the percentage of underwriting decisions that are made within the time specified within the company’s SLA. Not only does tracking this metric help to ensure that the customer stays happy, it also can help underwriting managers to identify underwriters who consistently breach the SLA.

There are numerous other Insurance KPIs to analyze, but keeping an eye on these four will definitely give you the head start you need to entice new and current customers. Download our Insurance Key Performance Indicator Catalog here.

Back to All Resources
Need help?
Call: 844-650-2888
Email: info@opsdog.com
TOTAL:
Tax will be calculated in the purchase step.
Continue to Payment
Please login to continue your purchase
Need help?
Call: 844-650-2888
Email: info@opsdog.com
Need help?
Call: 844-650-2888
Email: info@opsdog.com