Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
The insurance industry is considered the most complicated industry, and it must be evaluated and reported in a timely manner. The key insurance performance metrics streamline the reporting process for the sales, claims, and finance departments using insurance reporting solutions.
Data-driven insurance companies customize KPI to visualize their data dashboard and track the performance agreements of individuals, departments, organizations, etc.
Key performance metrics or indicators (KPI) for the insurance sector are measures taken by insurance companies to monitor and evaluate their performance efficiently. KPI, which stands for key performance indicators, assists in identifying areas of operational success and defining insurance companies’ performance.
Key performance indicators also provide a comparative analysis of the companies registered in the insurance sector.
The holders of the Insurance Web Aggregator License refer to the well-developed key performance metrics for evaluating their performance. Certain considerations must be reviewed when creating key performance metrics for an insurance web aggregator:
A clear and concise fundamental goal is crucial for creating key performance metrics for insurance web aggregators. The numerically assessable goal required for insurance KPI must not be subjective.
The holistic approach or impact of the insurance KPI on the business units must be mandatorily considered. The company’s homogenous approach must also be traced.
The key performance metrics for insurance web aggregators must align with the existing company framework or process and must not be resource-intensive.
When creating an environment where the key performance metrics positively impact the insurance web aggregators, the company’s culture (including the staff’s mentality) must be highlighted.
Data compilation and reporting are considered one of the most critical aspects of creating and implementing new insurance key performance metrics. Simply, the KPI dashboard is crucial for tracking and interpreting the data.
Implementing the key performance metric in the insurance business assists in making informed decisions about regulating the company’s operations.
Lead or sales-related KPIs are considered the backbone of the insurance industry. The following are some of the sales-related KPIs that must be used for tracking insurance sales:
The quota rate is considered one of the most fundamental key performance metrics used to measure sales representatives’ performance against their quotas. It assists the sales manager in setting the sales representative’s targets or quotas.
Bind rate is considered one of the best insurance key performance indicators. It measures the percentage of quotes that turn into policies and the individual performance of sales representatives with the skills to close a deal.
The contract rate is a straight-forward key performance metric that measures the number of leads capable of contacting versus the total number of leads reached out.
The key insurance performance metrics track almost all the policies retained or renewed against the number of new policies issued. Hence, insurance companies must renew their existing policies to retain them.
The key insurance performance indicator measures the company’s sales growth rate for a specified period. It measures the company’s organic growth rate, which is consistently observed.
The insurance-related KPI ensures a comparison between the number of clients referred by existing customers and the total number of new clients over a period of time. The growth in the number of referrals leading to the growth in the business prospects is the direct effect of the word-of-mouth of the happy clients.
Percentage pending is a typical key insurance performance indicator that evaluates the team’s efficiency in measuring the number of pending policies as a percentage of the total number of established policies.
Insurance claims are the next largest segment, often forcing insurers to pay for their policies. Some examples of the insurance claim-related KPI for web aggregators are provided below:
The claim ratio is a crucial claim-related key performance indicator for insurance web aggregators. It evaluates the number of claims divided by the amount of insurance premiums earned in a specific period.
It measures the company’s claims against the revenue period for a specified period.
Average cost pay-out claims, also known as average cost per claim, are one of the major KPIs used to predict future expenses and set policy rates.
Claim frequency is one of the key insurance performance metrics responsible for predicting and measuring the likelihood of loss incurred from claims. It ultimately assists companies in managing their cash flow, risk exposure, and rate setting.
The components of claim costs (CCC), which highlight the settlement, legal, and administrative costs to improve business profit, are among the most reliable KPIs in the insurance industry.
Most insurance companies find client satisfaction the trickiest key performance indicator to measure client retention and policy renewal.
Insurance companies are required to quickly and efficiently track and resolve clients’ longer problems. This key performance metrics allows insurance companies to save more money.
Financial KPIs are considered the core of reporting standards for insurance web aggregators. Every industry possesses different financial metrics that assist in gathering information regarding a company’s financial status.
The following are some of the examples of the financial KPI required to be traced by the finance department of the insurance companies:
Sales growth is the biggest insurance key performance metric, measuring the rise in revenue over a specified period of time.
The expense ratio is a key performance metric that provides a comparative analysis of the company’s total expenses and the premium generated over a specified period of time.
The average policy size is an insurance KPI used to assess a company’s risk profile. It measures the total value of premium collected compared to policies issued for a specified period.
The loss ratio is a financial KPI that indicates the divisibility of the total claims pay-out by the total premium revenue.
Average revenue per client is a financial KPI used to determine a company’s ability to spend the maximum amount to acquire a new client.
Another crucial financial key performance indicator is the net profit margin, which can be calculated by dividing the negative net income by the total revenue. A calculated net profit margin above 10% is considered healthy for insurance businesses.
The return on investment (ROI) measures the profitability of marketing campaigns and other business operations.
The cost-related key performance metrics allow the insurance companies to measure the cost accrued in every stage of the sales. The following are some of the cost-related KPIs that need to be reviewed at a regular interval of time:
Cost per quote is another crucial KPI that provides a perspective of the expenses incurred while presenting a quote to the customer. Insurance web aggregators are required to identify the bottlenecks (if any) causing the drop in estimated customers.
The cost per bind KPI is used to determine the incremental cost of binding or obtaining a new policy or a client. It is also known as cost per acquisition (CPA), which provides information regarding the cost incurred in acquiring a client every month.
Cost per bind by lead vertical is an insurance KPI that allows you to understand the cost per bind based on different verticals, such as automobile, home, life, health, etc.
The cost per item by lead vertical assists you in interpreting the verticals, allowing the most written items. This KPI can be tracked either monthly or weekly as required.
The administrative costs per policy is an updated version of the expense ratio KPI, which examines a specific cost that leads to a break in policy profitability.
The time-related key performance indicators are those which authorize the insurance web aggregators to measure the effective working of the insurance agency. The following are some of the examples of the time-related KPI for insurance web aggregators:
The average time to settle a claim is a crucial time-related KPI that analyses the average time to settle an insurance claim. For example, medical claims take more than usual to settle, which is a time-related KPI for health insurance companies.
The key insurance performance metrics measure the total number of days the underwriting department takes to process an insurance policy application. These metrics help highlight inefficient underwriters within a company.
The producer talk time and dials are one of the crucial time-related KPI which provides information concerning the effectiveness of the activities carried out by the producers.
Productivity-related KPI allows the insurance Web aggregators to track the activities and performance metrics of the insurance agent and the other employees. Some of the primary productivity-related KPI for insurance web aggregators are provided below:
Managers use the new policies per agent KPI to evaluate and compare the organization’s performance at the individual level (i.e., among producers). The basic idea behind the comparative analysis among the producers is having an efficient sales team and providing targeted training to the employees.
The policies in force per agent is a key insurance performance metric that compares the total number of policies in force with the total number of agents on staff.
The underwriting expense ratio is a KPI used to measure a company’s total expenses compared to the total premium acquired over a specified period. This form of KPI benefits the P&C insurance business.
The technology-based key performance indicators used by the insurance web aggregators are provided below:
Digital adoption rate, also known as technology adaption rate, is a technology-based KPI that tracks clients’ intention to engage with insurers via digital platforms. Meanwhile, insurers promptly adapt seamless digital data collection processes to increase their customer base.
User feedback on new features is a technology-based KPI generally used by insurance web aggregators to record the number of customers satisfied with the upgraded and new functionalities introduced on the digital platform.
The unique visitor KPI clarifies the website’s unique visitor count during a specified period. This KPI assists insurance web aggregators in understanding the size and nature of the target audience.
Bounce rate is a crucial tech-based KPI used to track the percentage of visitors who leave a website immediately after viewing it once.
Average session duration is a KPI to track a visitor’s average time on the insurance web aggregator’s official website during a single session.
The key performance metrics for insurance web aggregators streamline the effective monitoring of the performances of specific business areas. The above insurance-related KPI provides valuable insights that ultimately assist in understanding the exact improvement required for retaining the productivity rate.
KPIs, which stand for key performance indicators/metrics, are measures taken by insurance companies to monitor and evaluate their performance efficiently.
Loss ratio, expense ratio, combined ratio, policy renewal rate, and claim settlement ratio are important key performance metrics in the insurance sector.
Site visitors, unique visitors, average session duration, and ad conversion rates are some KPIs used to evaluate the website and tech-related traffic.
The five key performance indicators commonly used are client retention rate, new profit margin, customer satisfaction, revenue growth, and revenue per client.
Product, price, place, and promotion are the 4 P’s of KPI (key performance indicators).
Quota rate, bind rate, contract rate, retention rate, sales growth rate, number of referrals, and percentage pending are crucial sales-related key performance metrics for insurance web aggregators.
The insurance industry is considered the most complicated industry, and it must be evaluated an...
Category-I AIF is now a favourable option for Indian investors seeking to expand their portfoli...
To obtain a Certificate of Registration (CoR) for an NBFC in India, an applicant must meet the...
The insurance industry is on the edge of a transformative era. As we enter 2024, technological...
The Indian Cybercrime Coordination Centre reported a rise in digital financial fraud, which has...
Are you human?: 7 + 4 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Insurance web aggregators in India face several challenges, including stringent regulatory requirements that demand...
11 Jun, 2024
An insurance web aggregator license is mandatory for an entity to offer the services of insurance web aggregator. W...
10 Mar, 2022
9870310368 
8860712800