The high degree of uncertainty in Car Insurance Business make it no less complicated than a "money lending task" and is therefore strewn with risks. This is because creating a pool of profitable customers demands enough home-work to be done on the part of the insurance company.
It initiates with "meticulous screening of insurance history" of the applicants. This act will help in avoiding the inclusion of insurance seekers that have failed "partially" or "completely" in previous times in keeping with their insurance commitments. Weeding out such "potentially dangerous clients" at the earliest is necessary in an "understandable manner" as such proportion is like "dragging a cost bearing burden in the hope of getting some returns later".
Further comes the need to ensure that "timely deposits" by the subscribers is done. This too, is a highly analytical job and asks for wearing the "computational caps" throughout the proceedings. Moving on, the scrutinizing job does not end here itself as defaulters are to be spotted and given their share of suffering for enjoying the benefits without paying for those.
The key to escape such instances is connecting "commitments from customers"with "transparency in the company"s communication". In other words, the organization must clearly spell the terms and conditions that would be followed in every "plausible and thinkable" situation. Abiding by these stated "follow-ups" will go a long way in earning customers" trust and confidence. Also, the clients must be conveyed that dropping the expected amount in the company"s accounts within the provided time frame will be awarded in suitable manner. For instance, one can offer benefits like discounts, free repairs etc.
Heading further, the organization should also keep trying to give the "Insurance Schemes" (it is running) and the whole portfolio of the schemes a "makeover" for betterment. In other words, an effective way to tower above the other players from the area is to structure the schemes making them less prone to losing their shine. Such re-creations will help the company in "remaining an active participant at the battlefield". One can also opt for offering customized solutions. However, deserving attention must be paid to for coming up with "thoughtful" answers. Nevertheless, loopholes can make the operations go haywire soon enough.
Besides these internal factors, external happenings are no less effectual in disturbing the operations of a Car Insurance Company. For instance, the "National Economic State" exerts long term implications on the workings. The present scenario has severely affected the spending patterns of consumers, thereby making such companies fall short of meeting their financial targets.
BSC (Balanced Scorecard) is the "SOS" tool here. By spotting metrics "that count", one can have a "bird"s eye view" of the company"s operations. The perspectives that can help are- Schemes" Assessment Perspective, Internal Operations, Growth and Expansion Perspective and Financial Success and Acclamation Assessment.
The indicators to be put under Schemes" Assessment Perspective are- Average Documentation Timeframe, Fraction of "First Party" contribution in Total Insurance Scheme, Average Conversion rate and Legal Alignment. Internal Operations can be obtained with parameters like Types of Insurance schemes offered, Percentage increase in Portfolio, Number of Partners and Affiliates and Number of Fraudulent Cases discovered. Growth and Expansion aspect can be evaluated with metrics such as- "Number of Schemes Subscribed" Scaling, "Average target Surpassing" ratio and NTU ratio. Lastly, Financial Success and Acclamation can be assessed with KPIs such as Total Revenue Collections, Amount that went into satisfying claims, Financial Position and Number of Awards collected. By structuring a similar scorecard, one can have an effective tool to "eye the operations" of the company.
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