![]() ![]() Sub-par inbound data collection practices, poor information exchanges between claims adjusters and underwriters, and the inability of the claims adjuster to triage, or prioritize, incoming claims, all affect insurance claim employee productivity and, therefore, the amount of time spent settling claims. One factor that can influence extended claims settlement times, is the productivity of the employees working within the Claims Department of an insurance company. Insurance Claims Metrics Example # 2: Claims Processed per Claims Employee This not only results in higher productivity rates and lower costs for your insurance company, but can also reduce claims leakage – losses paid out that are higher than they should/could be. To prevent high values for this insurance claims metric, seek to improve claims triage procedures (i.e., the procedure used to prioritize reported claims, route the claim to the proper claims adjuster, etc.), inbound data collection practices (i.e., how insurance representatives, or claims adjusters collect information from the customer concerning the claim and the affected policy) and claims adjuster training. Benchmark values for this insurance claims processing metric range from 7 days to 14 days. When benchmarking or implementing department-wide insurance claims operational reporting, use the Claims Settlement Cycle Timemetric, which is defined as, the number of days required to settle a property and casualty (P&C) insurance claim from the time the claim is reported by a customer. It is not advisable for the insurance company to take too long to settle a claim as that will both reduce customer satisfaction, causing them to turn towards other insurance companies, and open the insurance company to litigation risks. Insurance companies must first review the claim to see if the events, or circumstances that have occurred are covered by the policy held by the customer. But settling a claim is a process that varies greatly in length of processing time from company to company. Insurance Claims Metrics Example # 1: Claims Settlement Cycle TimeĪs unrealistic as it may sound, customers expect claims to be settled as soon as they notify the insurance company that they incurred a loss or damage. 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. ![]() Insurance claims department metrics used to measure the efficiency of the insurance claim process should focus on the quality of service provided, the productivity of the insurance company’s claims employees and the cost of the claims process. Insurance claims metrics and KPIs are defined as the quantitative values used to determine how efficiently and effectively specific goals and objectives are achieved for the insurance claims process over a set period of time. How do we know this? We implement insurance claims business intelligence and analytics dashboards and benchmark insurance claims processes for Fortune 1000 insurers daily. The amount of money spent processing claims and the amount of paid losses themselves can become exuberant, if they’re not tracked rigorously. Measuring insurance claim payouts (i.e., payment for a customer reported loss, or damage) covered by the customer’s policy, and how much should be paid out, with the right insurance claims metrics will help keep this cost in check. 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. ![]()
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