What KPIs should you be tracking?

A lot of numbers cross our desks every day with the expectation to make meaningful analysis out of them. But do these numbers simply represent a measure much like 101 degrees can be a measure of body temperature? What does 101 degrees really mean if we don’t understand that normal body temperature should be 98.6? If 98.6 degrees is a target, then a target turns a measure into a key performance indicator (KPI). We know that the important KPIs to follow regarding our personal health are blood pressure, heart rate, temperature, and weight. What KPIs will give you a clear view of your insurance company’s claims health?

For any type of claim there are four important arenas to consider: customer satisfaction indexing (CSI), loss costs, expenses, and compliance. By breaking these arenas down into categories and assigning specific measures with appropriate targets to these categories, one can provide the company with easy-to-interpret results — especially if the individual KPI scores are aggregated to provide an overall category score. When monitored weekly, these overall category scores can help avoid the roller coaster effect of balancing customer satisfaction results against the need to control loss costs.