An insurance company in evaluating the effectiveness of its services.
Answers
Average value
According to Verisk Analytics, the average auto collision claim is $3,160, while the Insurance Research Council found that the average homeowner’s insurance claim is $626.
Why is this metric important?
The purpose of this KPI is to help your organization to properly assess the risk associated with each type of policy and adjust policy pricing accordingly.
3. Average time to settle a claim
What is this metric?
The Average Time to Settle a Claim KPI measures how long it takes – on average – to settle insurance claims for each type of policy your organization offers. Each insurance policy will have different claim periods, and may vary quite a bit in terms of how long it takes to settle that particular claim.
Calculation: Total Number of Days taken to settle all claims (in each insurance claim category) / Total Claims