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In working with our insurance carriers of all tiers, many clients ask me which key performance indicators (KPIs) are the most measured in the P&C industry. While there are several that are widely used and accepted, frankly, they are outdated.  I can confidently say that both the measures and emphasis are changing for the better, though.

For many years, the industry focused on paint and parts (specifically the ongoing repair vs. replace debate). Even though the parts metric has been the industry standard for many years, it is flawed. The parts metric measures the “percentage of parts dollars,” which on the surface seems logical, but any time you measure a percentage of something, it can lead to unexpected results.

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