KPIs to track in the Insurance Industries

An old saying goes “If you can’t measure it, you can’t improve it”. This holds absolutely true for any business. Because only by tracking crucial business metrics, you will be able to

Identify where you can make the easiest and most impactful improvements
And, determine a course of action to take your business to the next level

This article focuses on the important metrics that insurance companies should measure to improve their sales effectiveness. You can create smaller or longer running sales contests around these metrics. This helps in effectively motivating your agents to perform well in these metrics. For each of the metrics here, we have answered the following questions:

About the metric
How frequently you should measure it?
What target can you set for it
How to assign points and/ or declare winners upon achieving the targets

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1. Coverage

About the metric: This metric measures the number of customer meetings held by each agent every day

Target: Successfully meet 3 customers daily

Frequency of measuring: Daily. Establish a live leaderboard to keep a track of the progress of each agent

Points: 5 points per customer meeting

2. Number of referrals

About the metric: This measures the number of new client referrals that each agent earns from the existing clients.

Target: Give a target of bringing in at least 5 referrals each day

Frequency of measuring: Daily

Points: 5 points per referral

3. Number of policies sold

About the metric: This measures the number of units of a particular policy sold by each agent

Target: Set a target for each agent to sell 50 policies each month. Track their progress on a live leaderboard

Frequency of measuring: Measure this at the end of every month

Points: 50 points per policy sold

Winner: At the end of each month, reward the agent who successfully sold 50 or more policies

4. Quote Rate

About the metric: The quote rate is the most fundamental insurance KPI that can be used to gauge staff performance. The quote rate measures how many quotes an agent has been able to provide compared to the number of leads she has contacted.

Target: Give a target to send quotes to at least 50% of the contacted leads

Frequency of measuring: Measure quote rate at the end of every month

Points: 20 points per quote sent. Have a live leaderboard to keep track of each agents’ progress.

Winner: At the end of each month, reward the reps who sends the highest number of quotes

5. Percentage Pending

About the metric: This is a typical insurance KPI used to evaluate how efficiently various teams in your company are working together. This measures the percentage of policies pending approval when compared to the total number of policies established.

Target: This percentage has to be as low as possible. A high percentage indicates a bottleneck in a team’s workflow.

Frequency of measuring: Twice a month. Once every 15 days.

Winner: The team with the lowest pending approval percentage wins

6. Renewal or Retention

About the metric: This measures the number of policies that the agents are able to successfully renew after the initial term expires

Target: No specific target but encourage the agents to renew as many policies as they can

Frequency of measuring: Monthly

Points: 20 points per renewed policy

Winner: The winner will be the agent who successfully renews more number of policies by the end of the month

7. Sales/ New Business

About the metric: This metric tracks the number of new insurance policies sold over a period of time. This can be tracked by the product line and/or by the agent.

Target: Sell 2 policies weekly

Frequency of measuring: At the end of every week

Points: 50 points per policy sold

Winner: The winner will be the agent with the highest score

8. Size of the Policy Premium

About the metric: This metric assigns points based on the size of the policy premium sold Target: No target in specific but encourage the agents to sell higher-level policies and earn more points Frequency of measuring: Monthly Points:

Policy premium less than $10k gives 15 points
Policy premium between $10k to $20k gives 20 points
Policy premium between $20k to $30k gives 30 points
Policy premium more than $30k gives 40 points

Winner: At the end of each month, sum up the points earned by each agent. Declare the one with the highest total score, as the winner.

9. Revenue Target

About the metric: This is used to see if the individual agents or teams are able to achieve their quarterly or annual revenue targets

Target: Set the revenue amount that you want to achieve in a quarter as the target

Frequency of measuring: Measure at the end of every quarter

Winner: Declare the individual or the team that achieves the revenue target first as the winner

10. Premium collection

About the metric: Some customers might not pay their insurance premium on-time. In such a case, you want your agents to reach out to those customers and convince them to pay their premium. This metric keeps a track of the numbers of customers from whom the agents could successfully collect the premium amount.

Target: Encourage the agents to get premiums from as many customers as they can

Frequency of measuring: Weekly

Points: 10 points per premium paid

Winner: The agent who successfully convinces more number of customer to pay their premium

11. Bind Rate

About the metric: The bind rate insurance KPI is useful as it measures the individual performance of staff. It shows who is skilled enough to close deals. The bind rate is the percentage of quotes that are converted into legally binding policies.

Target: The agents should aim to achieve a higher bind rate

Frequency of measuring: Monthly

Points: 20 points per deal closed

Winner: Whoever has the highest bind rate by the end of a month

12. Underwriting Speed

About the metric: This is a team metric. It keeps a track of the number of days within which the underwriting decision of each policy claim is made. Ideally, it should be done as defined by the company’s service level agreement

Target: Within the time defined by SLA

Frequency of measuring: End of every month

Winner: Reward the team that has underwritten all or most of the claims assigned to them before the deadline

Bancassurance KPIs

13. Branch Activation

About the metric: This measures the number of bank branches activated every week

Target: Give a target to activate at least one branch in a week

Frequency of measuring: Every week

Points: 20 points per activation

Winner: At the end of every month, reward the agents who have consistently activated at least one branch every week without fail.

14. Branch Coverage

About the metric: This metric measures the number of customers the bank employees have reached out to in order to sell insurance policies

Target: Contact 50 customers daily

Frequency of measuring: Every day

Points: 5 points per customer contacted

Winner: The winners will be the reps who successfully contact 50 customers or more in a day

15. Lead Generation

About the metric: This metric tracks the number of leads that the bank employees have successfully entered into the sales pipeline

Target: Give a target to enter 50% of the contacted leads into the sales pipeline

Frequency of measuring: Daily

Points: 10 points per lead entered into the sales pipeline

Winners: The agents who meet or exceed the lead generation target

16. Total Revenue Generated

About the metric: This metric measures the total revenue generated by each bank branch

Target: Based on your business goals, set an achievable quarterly revenue target for them

Frequency: At the end of every quarter

Winner: Reward the branch that is first to meet or exceed its quarterly revenue target

17. Renewal Percentage

About the metric: This measures the percentage of policies that have been successfully renewed by the bank employees after the initial term has expired.

Target: No specific target. The agents should aim to renew as many expired policies as they can.

Frequency of measuring: Monthly

Points: 20 points for each renewed policy

Winner: The winner will be the agent who renews more number of expired policies than everyone else

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