Since different insurers focus on various lines of business (life, health, property & casualty, etc.), the most relevant KPIs will vary slightly.

Customer-focused KPIs

• Customer Acquisition Cost (CAC): Average cost to acquire a new policyholder. Track in relation to Customer Lifetime Value.
• Customer Retention Rate: Percentage of policyholders who renew their coverage at the end of the term. High retention lowers acquisition costs.
• Customer Lifetime Value (CLV): Projected revenue a customer generates over their relationship with your company.
• Net Promoter Score (NPS): Tracks the likelihood of a customer recommending your insurance company. High NPS reflects loyalty.
• Customer Satisfaction Surveys (CSAT): Measure satisfaction with pricing, claims experience, customer service, etc.

Sales & Growth KPIs

• Premium Growth: Percentage increase in written premiums over time. Tracks overall business expansion.
• New Policies Sold: Number of new policies written in a given period. Helps track growth and market penetration.
• Conversion Rate: Percentage of leads or quotes that turn into paying customers. Tracks sales process effectiveness.
• Market Share: Percentage of total premiums in a specific market or for a particular line of insurance that your company captures.

Underwriting KPIs

• Loss Ratio: Total losses incurred (claims paid) divided by premiums earned. Lower ratios suggest better underwriting and profitability.
• Combined Ratio: Loss ratio plus expense ratio. A ratio below 100% generally indicates an insurer is underwriting profitably.
• Profit per Policy: Average profit generated per insurance policy. Helps understand underwriting and pricing decisions.
• Underwriting Cycle Time: The time taken to evaluate risk, determine pricing, and issue a policy. Faster turnaround times can improve customer experience.

Financial KPIs

• Return on Equity (ROE): Net income divided by shareholder equity. A vital measure of profitability for investors.
• Expense Ratio: Operating expenses as a percentage of premiums earned. Lower ratios indicate greater efficiency.
• Claims Processing Cost: Average cost to process an insurance claim. Efficient claims management reduces expenses.
• Investment Income: Income earned from investing the premiums collected. A significant revenue source for many insurers.

Operational KPIs

• Claims Cycle Time: Average time to settle a claim from initial filing to payout. Faster resolution enhances customer satisfaction.
• Claims Accuracy: Percentage of claims paid out correctly as per the policy terms. High accuracy reduces disputes.
• Policy Lapse Rate: Percentage of policies that terminate before their intended term due to non-payment or cancellation.