Did you know that insurance comapnies have key KPI's (key perfomance indicators)!? And these KPI's mostly focus on how they can make MORE PROFIT! Some examples of insurance company KPI reporting include (see excerpt from a recently posted insurance article):
Sales KPIs for the Insurance Industry
Sales are the backbone of the insurance industry. You can have all the products you want, but without someone selling them, you can’t make a profit!
Quote Rate – The quote rate is the most fundamental insurance key performance indicator that can be used to gauge staff performance. The quote rate measures how many quotes a staff member has been able to provide compared to the number of leads they have contacted.
Quota Rate – The name of this insurance KPI only differs by one letter from the previous, but measures something even more important than the quote rate. The quota rate is used to measure the performance of staff in meeting their sales targets. It is important that a company doesn’t set the quota so high that it is unattainable, or staff may feel demoralized and unmotivated. This rate can help set an appropriate quota.
Contract Rate – The contract rate insurance metric is straight forward. This KPI measures how many leads a staff member was able to contact vs. the total number of leads they reached out to.
Number of Referrals – This insurance KPI measures how many new clients were referred by existing clients against the total number of new clients over a given time period. This insurance metric helps gauge two different aspects. The first is how satisfied your existing clients are with your products and services. The second is how much of the company’s growth is organic as opposed to being advertisement driven.
Bind Rate – The bind rate insurance KPI is useful as it measures individual performance of staff, showing who has the skills to close a deal. The bind rate is the percentage of quotes that are converted into legally binding policies.
Percentage Pending – This is a typical insurance KPI used to evaluate how efficiently the team is working together. This measures how many policies at any given time are pending approval as a percentage of the total number of policies established. A high percentage pending can indicate a bottleneck in your company’s workflow.
Sales Growth Rate – This insurance performance metric measures how much a company’s sales have increased (or decreased) over a specific period. This metric is best utilized when broken into two different categories. It should be used to measure the number of new policies as well as the number of policy renewals, as these two figures can give you more insight into how the business is performing.
New Policies per Agent – You want to know who your top performing agent is, don’t you? This insurance metric helps companies keep track of who their star performers are, as well as bringing about some healthy competition between agents.
Retention Rate – Obtaining new clients can be a costly and time-consuming process. In fact, it is much more profitable for companies if they can renew an exiting policy. This key insurance metric tracks the percentage of policies that are renewed against the number of new policies issued.
Policies In-Force per Agent – This insurance metric isn’t targeted at the agent specific level. It takes the total number of policies in-force and divides it by the total number of agents on staff. This insurance KPI can be used in conjunction with the retention rate metric and the sales growth rate to try and identify where inefficiencies are occurring.
The front-line staff of insurance comapnies are an integral component to any insurance company and how they make a profit off the backs of hard working policyholders.
These examples of sales KPIs in the insurance industry should give you a good idea that they are not the best neighbor and you're not in good hands. They must make a profit, and the main way they do this is by undermining the insurance claims process.
.png)
Don't be a victim twice. Call or email us today for a free no obligation consultation regarding your insurance claim problem.
