Evaluate Insurance Claims More Effectively with Excel KPIs
Claims are one of the important considerations of an Insurance company. Proper management of insurance claims is required to effectively supervise the whole process, to detect fraudulent activities and to enhance the faith and confidence of policy holders in the working of the company.
KPIs can be used as effective means to evaluate claims management processes to manage claims in the insurance companies.KPIs in relation to Insurance Claims Management can be classified in 4 major perspectives- financial perspective, claim processing perspective, operational perspective and efficiency perspective.
Financial perspective talks about KPIs such as percentage increase in average claim payment per case, percentage decrease in expense payment per case, legal cost incurred as a percentage of total cost and percentage change in costs on claims processing.
Claim processing includes KPIs that judges the claim processing activities on various grounds i.e. percentage of records properly documented, claim settlement time, percentage settlement of claims and percentage increase in claim files managed by operator.
Operational perspective comprises of KPIs like percentage of no. of claims and new business policies issued, claim paid amount as a percentage of first year premium, claim paid amount as a percentage of renewal premium and number of claims per product.
Efficiency perspective helps in judging the claim management processes. It consists of KPIs like percentage decrease in customer complaints, number of litigation per open files, percentage decrease in fraudulent activities and percentage reduction in average claim processing time.
Why do business professionals choose ready-to-use KPIs?
Read Why do business professionals choose ready-to-use KPIs? to find out the answers to these questions:
- Can a business professional research KPIs on his own?
- How do I avoid typical problems with KPIs?
- Is ready-to-use KPI applicable in my niche?
- Is KPIs' price affordable?
- Can KPIs can be easily integrated in any business environment?
- How can KPIs make the difference to the business?
What are the benefits of Insurance Claims metric:
- Financial measures are obviously most important for insurance companies. So, common KPIs include total revenue, costs for payouts, percentage of customers who claimed payouts vs total number of customers etc.
- Sure, claim processing procedures are to be evaluated by any insurance company. Incluranse claims BSC will allow you do that.
- By measuring number litigation cases per claim, managers will be ablo to improve policies to satisfy customers.
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More ideas on using Insurance Claims KPI
Insurance companies have an important task of providing the policy holders their claims in cases where it is due. There are two aspects involved in it, first being that no genuine claimer is denied his/her rights and second that a pretender gets caught at the right time. However, this task of making sure that funds reach only the right person demands tremendous efforts from the Insurance company.
Sometimes, there is a really long process of confirmation that occurs prior to the actual offering of funds. All this has a single aim of 'making right amount of money reach the right individual'.
One can construct a balanced scorecard to effectively monitor this task, thereby ensuring that the company earns reputation among its client base and success in its pre-set aims. This management instrument depends on the KPIs (Key Performance Indicators) that are collected on it to help the firm sail its boat unharmed out of the frequently 'turbulent' conditions faced during its operations.
By looking at the factors that affect the re-payments' movements, one can frame fruitful indicators and head on with the task of conducting the disbursement job efficiently.
More useful information for Insurance Evaluation
Insurance Claims Evaluation Balanced Scoreboard Screenshots
Metrics for Insurance Evaluation
This is the actual scorecard with Insurance Claims Measures and performance indicators.
The performance indicators include: financial perspective, % increase in average claim payment per case, percentage decrease in expense payment per case, legal cost incurred as a % of total cost, % change in costs on claims processing, claims processing perspective, % of records properly documented, claim settlement time, % settlement of claims, % increase in claim files managed by operator, operational perspective, % of no. of claims and new business policies issued, claim paid amount as a % of first year premium, claim paid amount as a % of renewal premium, no. of claims per product, efficiency perspective, % decrease in customer complaints, number of litigation per open files, % decrease in fraudulent activities, % reduction in average claim processing time.
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