Claims that take months to resolve-or claims that need to be re-estimated-cost the insurer more than claims handled expediently. Insurers can control some elements of claims management and settlement, such as how productive and accurate claims adjusters are and how long it takes to process claims. Insurers obviously have to pay bona fide claims but how efficiently they pay those claims directly impacts profitability. Administrative benchmarks that measure the number of new policies booked or the speed of underwriting are important in monitoring revenues, while claims benchmarks ensure that revenue isn’t unnecessarily leaked from the bottom line.īenefits of Using Benchmarks in the Auto Insurance Industry There are a wide variety of benchmarks available for auto insurers to compare how their costs compare to their peers. An auto insurance benchmark can be defined as a point of reference, either a KPI or KRI or other chosen insurance metric, against which performance is compared against an industry average to gauge where your business lands that can be used to pin-point problem processes or areas. Once you have chosen metrics that align with your insurance company’s goals, then you are ready to begin to benchmark in earnest. KPIs describe the operational efficiency of claims processing and KRIs describe the risks associated with not collecting more premiums than insurers pay out in claims. Insurers can use both key performance indicators (KPI) and key risk indicators (KRI) for claims benchmarking. To benchmark auto insurance, first you will need to pick metrics to measure. Auto insurance metrics enable insurers to determine how to control claims costs without negatively impacting customer satisfaction. Learn to benchmark auto insurance metrics to boost claims productivity and streamline operations. For auto insurers, paying legitimate claims while minimizing the costs to process those claims is critical to profitability. Claims is where the rubber meets the road.
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