Finance & Insurance KPIs | Insurance KPI & Finance KPI Examples

Finance and Insurance KPIs

Maximize financial performance in the Finance and Insurance industry with our comprehensive list of key performance indicators (KPIs). From return on assets and underwriting results to customer satisfaction and regulatory compliance, track and measure progress to make data-driven decisions.

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KPI Examples for Finance and Insurance

Finance

  • Accounting costs
  • Accounts payable
  • Accounts payable turnover
  • Asset turnover rate
  • Average sum deposited in new deposit accounts
  • Average value of past due loans
  • Cash conversion cycle (CCC)
  • Cash dividends paid
  • Cash flow return on investments (CFROI)
  • Common stock equity
  • Cost of goods sold (COGS)
  • Cost per hour per lawyer (in-house)
  • Creditor days
  • Cumulative annual growth rate (CAGR)
  • Cycle time to perform periodic close
  • Cycle time to resolve an invoice error
  • Days payable
  • Debt-to-asset ratio
  • Debtor days
  • Direct costs
  • Earnings per share (EPS)
  • EBIT
  • EBITDA
  • Economic value added
  • Enterprise value/takeover value
  • Fixed costs
  • Gross margin on managed assets
  • Gross profit
  • Gross profit margin
  • Indirect costs
  • Interest expense
  • Interest on net worth
  • Invoicing processing costs
  • Labor and management cost
  • Labor and management earnings
  • Legal staff per size of revenue
  • Long-term debt
  • Marginal costs
  • Market share
  • Net change in cash
  • Net interest margin
  • Net new money
  • Net profit
  • Net profit margin
  • Number of budget deviations
  • Number of invoices outstanding
  • Number of past due loans
  • Operating income
  • Operating leverage
  • Operating margin
  • Operating profit margin
  • Other current liabilities
  • Other noncurrent liabilities
  • Percentage of accuracy of periodic financial reports
  • Percentage of effectiveness in payables management
  • Percentage of budget deviation relative to total budget
  • Percentage of electronic invoices
  • Percentage of financial reports issued on time
  • Percentage of invoices requiring special payment
  • Percentage of invoices under query
  • Percentage of legal budget spent outside
  • Percentage of low-value invoices
  • Percentage of payable invoices without purchase order
  • Preferred stock equity
  • Product turnover ratio
  • Profit
  • Profit loss due to theft
  • Profit margin
  • Profit per product
  • Quick ratio
  • Rate of return on assets
  • Rate of return on equity
  • Return on assets
  • Return on capital employed (ROCE)
  • Return on investment (ROI)
  • Return to equity
  • Revenue
  • Revenue per employee
  • Sales per share
  • Same store sales
  • Selling general and administrative (SG&A) expenses
  • Share price
  • Shares outstanding
  • Sharpe ratio
  • Short-term debt
  • Sortino ratio
  • Systems cost of payroll process as a percentage of total payroll cost
  • Tier 1 capital
  • Total assets
  • Total current liabilities
  • Total equity
  • Total legal spending as a percentage of revenue
  • Total liabilities
  • Total of uninvested funds
  • Total quantity of new deposit accounts
  • Total sum deposited in new deposit accounts
  • Total value of past due loans
  • Variable costs

Insurance

  • Average insurance policy size
  • Claims
  • Combined cost and claims ratio
  • Combined ratio
  • Current premium versus loss
  • Earned premium
  • Expense ratio
  • Expenses
  • Exposure
  • Loss adjustment expenses (LAE)
  • Loss ratio
  • Number of days open of insurance claims
  • Number of new insurance policies
  • Previous premium versus loss
  • Underwriting speed of insurances
  • Written premium

Why track KPIs in finance and insurance?

The use of key performance indicators (KPIs) can bring significant benefits to companies in the finance and insurance industry. These benefits can range from improved decision-making and increased efficiency to enhanced customer satisfaction and overall profitability. In this article, we'll take a closer look at the many advantages that KPIs can offer to finance and insurance companies, and discuss how they can be implemented effectively.

One of the most important benefits of using KPIs is that they can help a company identify areas of improvement and track progress over time. This is particularly important in the finance and insurance industry, where competition is fierce and staying ahead of the curve is essential. By tracking relevant KPIs, such as customer acquisition rates, retention rates, and profitability, a company can gain a better understanding of where it is excelling and where it needs to focus its efforts.

Another key benefit of using KPIs is that they can help a company make more informed and effective business decisions. By providing real-time data on key areas of the business, KPIs can help managers and executives identify trends and patterns that would otherwise be difficult to detect. This can allow them to make more accurate predictions about future performance and take proactive measures to address any potential issues.

In addition, KPIs can also help a company improve efficiency and productivity. By setting clear targets and tracking performance against those targets, a company can ensure that resources are being allocated effectively and that employees are focused on the most important tasks. This can lead to improved performance across the organization and ultimately, higher levels of profitability.

Another important benefit of using KPIs is the ability to enhance customer satisfaction. For example, by tracking customer satisfaction rates, response times, and complaint resolution times, a company can gain a deeper understanding of what its customers want and need, and take action to improve their experience. This can ultimately lead to increased customer loyalty, repeat business, and improved brand reputation.

Finally, using KPIs can also help a company to improve risk management and compliance. In the finance and insurance industry, there are a wide range of regulations that companies must comply with, and failure to do so can have serious consequences. By tracking key compliance-related KPIs, such as complaint resolution times and the number of regulatory breaches, a company can identify areas of risk and take steps to address them before they become a major problem.

To effectively implement KPIs in a finance and insurance company, it's important to start by identifying the most important areas to measure. This will depend on the specific goals and objectives of the company, as well as the unique challenges it faces. Once the appropriate KPIs have been identified, it's important to set clear targets and track performance against those targets on a regular basis. It's also crucial to ensure that the data being collected is accurate and reliable, and that it is being analyzed and used to inform decision-making.

In conclusion, using KPIs can bring many benefits to companies in the finance and insurance industry, from improved decision-making and increased efficiency to enhanced customer satisfaction and overall profitability. By effectively implementing and utilizing KPIs, these companies can gain a deeper understanding of their business, identify areas of improvement, and ultimately drive growth and success.

The 7 most popular finance and insurance KPIs

When it comes to measuring performance in the finance and insurance industry, key performance indicators (KPIs) are an essential tool. By tracking a carefully selected set of KPIs, companies in this industry can gain a deep understanding of their business, identify areas of improvement, and make data-driven decisions to drive growth and success. In this article, we'll take a closer look at some of the most important KPIs that finance and insurance companies should be using.

  1. Customer Acquisition Rate (CAR) - CAR is the percentage of new customers that a company acquires within a given period of time. This KPI is important because it provides an understanding of how effective a company's sales and marketing efforts are at bringing in new business. A higher CAR indicates that a company is doing a good job at reaching new customers and convincing them to buy its products or services.
  2. Customer Retention Rate (CRR) - CRR is the percentage of customers that a company is able to retain over a given period of time. This KPI is important because it gives an idea of how well a company is retaining its existing customer base, and what can be done to improve customer satisfaction and keep them loyal. A higher CRR indicates that a company is doing a good job of keeping its customers happy and engaged.
  3. Gross Profit Margin (GPM) - GPM is a ratio that compares a company's gross profit to its revenue. This KPI is important because it gives an indication of how profitable a company's operations are. A higher GPM indicates that a company is generating a greater profit margin on its products or services, and is likely to be in a better financial position.
  4. Return on Equity (ROE) - ROE is a ratio that compares a company's net income to its shareholder equity. This KPI is important because it gives an indication of how effectively a company is using its shareholders' equity to generate a return. A higher ROE indicates that a company is effectively using its assets and generating a strong return for its shareholders.
  5. Solvency Ratio - Solvency Ratio compares a company's liabilities to its assets. This KPI is important for finance and insurance companies as it helps to understand how much of the company's assets are tied to liabilities, which can help to understand the company's ability to pay off its debts in the case of financial distress.
  6. Compliance-related KPIs - In the finance and insurance industry, companies are subject to various regulations and non-compliance can lead to severe consequences. Therefore, compliance-related KPIs are crucial for such companies. Such KPIs include the number of regulatory breaches, complaint resolution times, and customer complaints related to compliance issues.
  7. Net Promoter Score (NPS) - NPS is a customer satisfaction metric that measures how likely customers are to recommend a company's products or services to others. This KPI is important because it gives an indication of how well a company is meeting the needs of its customers and how satisfied they are with the company's products or services. A higher NPS indicates that a company is doing a good job of keeping its customers happy and satisfied.

To effectively use KPIs, it is important to select the right KPIs that align with the company's goals and objectives. It's also important to ensure that the data being collected is accurate and reliable and that it's being analyzed and used to inform decision-making. Additionally, setting targets and tracking performance against those targets on a regular basis can help ensure that progress is being made towards achieving the desired outcomes.

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