Category: Insurance Claims KPIs and Metrics

It’s a simple equation: the higher the cost to manage claims, the lower an insurer’s profitability. Obviously insurers don’t want to rush the claims process and wind up mistakenly paying for fraudulent claims, but quickly--and accurately--processing legitimate claims has a direct, positive impact on the bottom line. What are Insurance Claims Benchmarks? An insurance claim is a formal request from a policyholder for compensation for a covered loss or policy event. Every type of insurer--whether property & casualty (P&C), life and annuities, automobile, medical, disability, or liability insurance—is required by…

Claims is where the rubber meets the road. For auto insurers, paying legitimate claims while minimizing the costs to process those claims is critical to profitability. Learn to benchmark auto insurance metrics to boost claims productivity and streamline operations. Auto insurance metrics enable insurers to determine how to control claims costs without negatively impacting customer satisfaction. What are Auto Insurance Benchmarks? To benchmark auto insurance, first you will need to pick metrics to measure. Insurers can use both key performance indicators (KPI) and key risk indicators (KRI) for claims benchmarking.…

While external pressures such as economic conditions and the number of natural catastrophes can have a significant impact on the short-term profitability of insurance companies, insurers have plenty of opportunities to boost their long-term profitability by focusing on key performance indicators (KPIs). Measuring and then managing performance metrics inside an insurance KPI library can help insurers compete against peers, respond to market changes, attract customers, drive down loss ratios, and reduce costs. What is an Insurance Key Performance Indicator (KPI)? A insurance key performance indicator (KPI) can be defined as…

Besides determining the best ways to sell insurance policies to customers and ensuring that policy applications are processed in a timely manner, insurance companies must focus their benchmarking, business intelligence and operational reporting efforts on claims processing metrics, or their loss ratio will continuously rise. Here are 4 examples of insurance claim metrics and KPIs that every insurance company should be tracking to improve the efficiency of the insurance claim process.