Claims Ratio

Insurance KPI Examples | Claims Ratio

The Claims Ratio KPI measures the number of claims in a period and divides that by the earned premium for the same period. It's important to note that insurance is the business of managing risks and, to do that well, the insurer needs a thorough understanding of the incurred claims ratio. If the value is higher than expected or established norms, then further investigation is required to figure out why that is (eg: fraud). If it is lower than expected, it could indicate irrelevant products or difficulties in claiming, possibly affecting customer satisfaction.

Free 5 minute KPI lessons delivered to your inbox every day for 5 days

KPIs & Metrics 101

Everything you need to know about KPIs to start your data driven journey

KPIs & Metrics 201

Real life business examples of KPIs and how to establish key business metrics