For an insurance company, success means balancing long-term rewards against short-term risks. Professionals in the insurance industry know this isn’t an easy task, but a claims management dashboard can make the process a lot simpler – and, in the end, help insurers walk the fine line between opportunity and payoff.
Welcome to Data-Driven Culture
If you’re considering a claim management dashboard, the first question you need to ask is “Why?” How can a dashboard help my company be more successful? The answer to this question varies between organizations, but here are a few principles to help you understand the purpose of a dashboard and, more importantly, a data-driven company culture:
- Insurance KPI dashboards help you identify areas of success and improvement, which means you can make educated decisions based on numbers instead of hunches.
- Dashboards eliminate data “clutter” by streamlining the time and energy it takes to collect, organize, and deploy important information.
- Dashboards help you make accurate predictions from real data, so you can plan for the right strategy and resources to reach your company goals.
- Dashboards employ data visualization, which is proven to help people understand and absorb important data faster and with better accuracy.
Read next: What is the Purpose of a Dashboard?
Let’s Talk Numbers: Here Are the Insurance KPIs Companies Should Track
Knowing which insurance key performance indicators (aka KPIs or metrics) to track can be tricky, so make a list of the big numbers first. Some insurance KPI examples are: the average cost per claim, sales revenue, and quotas vs. production. Each of these factors, along with others, influence an even more important data point: your company’s net income. Just tracking income isn’t enough though, because it’s not actionable. In other words, it doesn’t help you understand why or why not your company is meeting its goals. To accomplish this, consider integrating these KPIs into your claim management dashboard.
Insurance Metrics for a Successful Claims Management Dashboard
- Cost Per Claim
This data point measures how much money, on average, each claim costs your company. For a claim management dashboard, you can use drilldowns to differentiate between different policy types. With this information, you can identify which ones pose the least amount of risk.
- Quotas vs. Production
This data point will show you which agents are meeting their sales quotas and which ones aren’t. Once you identify areas of success and improvement, you can use your dashboard to identify trends between successful agents and apply them to those who are behind pace to meet their quotas.
- Sales Growth Percentage
This data point will show you sales growth over a specified period, such as a fiscal year or financial quarter. Generally speaking, it’s best to break this metric into two categories: new policies and renewals. If new policy sales are growing at a higher rate than renewals, for example, you can find out why and use your success to build an improvement strategy to increase renewals.
- Top Brokers in Sales
This insurance metric is based solely on sales revenue and ranks your top-performing brokers. The purpose of this data point is twofold: First, it fosters accountability and healthy competition between brokers; secondly, it lets you make tactical decisions based on the sales and claims management strategies of each employee.
- Average Settlement Time
Average settlement time is a commonly overlooked but vital data point for insurance companies. In short, it displays how much time your company takes to settle an average claim. Just like your cost-per-claim metric, settlement time should be drilled down into policy types so your sales strategy can target the right policies.
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If you’d like to see what a successful claims management dashboard looks like for your company, TruOI wants to hear from you. If you want to learn more about our iDashboards Enterprise Reporting for insurance, check out our insurance dashboard solution.