Finance & Insurance KPIs | 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.

Ornament pattern
Ornament pattern

KPI Examples for Finance and Insurance


  • 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
  • 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


  • 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?

Organizations in the Finance and Insurance Industry (such as insurance companies, insurance brokers, and insurance agencies) track Key Performance Indicators) (KPIs) to measure their success and drive growth. By monitoring insurance company KPIs, insurance broker KPIs, and insurance agency KPIs, these organizations can benefit in a variety of ways.

Key performance indicators (KPIs) are metrics that measure the success and progress towards important business objectives. Tracking KPIs is crucial across all industries, but especially so in the finance and insurance sector. Financial services firms deal with sensitive client money and data, complex regulations, and an incredibly competitive marketplace. Monitoring performance through KPIs allows companies to ensure they are operating efficiently, managing risks appropriately, and providing high-quality service.

This extensive article will examine why finance and insurance businesses must pay close attention to KPIs. It will cover the benefits of tracking KPIs, the risks of not monitoring them closely, what specific metrics should be followed, and how to use KPIs to drive growth and innovation. Any professionals in banking, investments, insurance, or financial advisory roles will find great value in understanding the critical importance of performance indicators.

Benefits of Tracking KPIs

When utilized correctly, KPIs offer finance and insurance firms a wealth of advantages:

  • Identify Strengths & Weaknesses: KPIs shine a light on parts of the business that are thriving and areas in need of improvement. They show executives and managers where to allocate resources to maximize results.
  • Quantify Progress Towards Goals: Company objectives around profitability, growth, risk management, and more can be broken down into measurable KPIs that show if the business is on track. Metrics make progress (or lack thereof) tangible.
  • Inform Strategic Decision Making: KPI monitoring enables data-driven decision making. Leadership can base important choices around expansion, restructuring, investments, and target markets on real performance data rather than instincts.
  • Motivate Employees: When staff members see KPIs consistently being met or exceeded, it actively motivates them to maintain that high bar. Goals feel more attainable when tracked through metrics.
  • Enable Benchmarking: Industry-standard KPIs allow companies to benchmark against competitors. The ability to compare performance helps leaders set goals and provide context around results.
  • Enhance Transparency: Tracking and sharing performance metrics fosters openness and transparency in the workplace. Everyone has access to the same numbers, can monitor progress, and understand expectations.
  • Identify Problems Early: Sudden drops or concerning trends prompt action. KPIs can catch small issues before they become major problems that threaten the health of the business.

Risks of Not Monitoring KPIs

Neglecting performance metrics leaves finance and insurance companies susceptible to an array of risks including:

  • Lack of Accountability: Without KPIs, employees and leaders have no quantified targets to be held accountable to. Lax accountability can lead to declining performance.
  • Poor Decision Making: Decisions made on hunches rather than data carry inherent risk. KPIs enable leaders to make calls backed by hard metrics.
  • Complacency: When progress isn’t tracked, it’s easy to become complacent. KPIs motivate teams to continually strive for more.
  • Failure to Catch Issues: Companies that don’t monitor key performance indicators are often blindsided by declines in sales, marketing ROI, customer satisfaction, and other areas.
  • Inability to Identify Opportunities: Strong performance in certain metrics reveals opportunities for growth and optimization. That visibility is lost without tracking KPIs.
  • Loss of Investor Confidence: Publicly traded financial services companies that don’t report performance metrics often lose investor confidence and suffer stock declines.
  • Competitive Disadvantage: Rivals who effectively leverage KPIs have an edge over companies who fly blind. They make sharper decisions and address problems faster.

Now that the substantial benefits of monitoring KPIs are clear, along with the significant risks of not tracking metrics, let’s examine some of the most critical performance indicators for finance and insurance firms.

Key Performance Indicators to Track

Finance and insurance encompass a broad range of sectors, each with their own relevant KPIs. However, there are certain overarching metrics that matter to nearly all organizations across the industry. Leadership teams should make reporting on these KPIs a top priority:

  • Customer Acquisition Cost - The total spend on marketing and sales divided by the number of new customers acquired. This metric offers insight into the efficiency of acquisition efforts.
  • Customer Retention Rate - Percentage of customers retained over a period. High retention signifies satisfaction and loyalty.
  • Customer Lifetime Value - Total revenue generated by a customer over their lifetime. A valuable metric in forecasting and budgeting.
  • Customer Satisfaction Score - A ranking on a defined scale based on surveys and feedback. Critical for monitoring brand reputation.
  • Policy Renewal Rate - For insurance providers, the percentage of policies renewed versus allowed to lapse. An important gauge of customer satisfaction.
  • Average Claim Value - How much the average claim costs the insurer. Rising figures require review of policies and underwriting.
  • Loss Ratio - The ratio of total losses to total premiums. Must be balanced to maintain profitability.
  • Combined Ratio - The combined calculation of loss ratio plus expense ratio. Measures overall underwriting profitability.
  • Return on Equity - Net income divided by shareholder equity. Tracks how much shareholders are earning on their investment.
  • Return on Assets - Profits divided by total assets. Shows how efficiently assets are being utilized.
  • Capital Adequacy Ratio - The company's capital expressed as a percentage of its risk-weighted assets. Assesses financial strength.
  • Net Interest Margin - The revenue generated from interest minus interest expenses, divided by average earning assets. Monitors lending profitability.
  • Cost-to-Income Ratio - Operating expenses divided by total revenue. Used to gauge efficiency and profitability.
  • Funds Under Management Growth - How much a firm's managed assets increase or decrease over a period. Highlights success in attracting investors.

These KPIs only scratch the surface of the hundreds of possible metrics to track. But focusing on this core group provides tremendous insight into all facets of finance and insurance. The next step is learning how to apply KPIs to boost performance.

Using KPIs to Drive Growth & Innovation

Simply tracking KPIs alone doesn’t generate growth or spark innovation. Finance and insurance companies must take it a step further by:

  • Setting KPI Targets: Determine specific goals based on past performance, economic conditions, and growth plans. Avoid vague objectives by quantifying via KPIs.
  • Benchmarking vs. Competitors: Use competitor KPIs as a benchmark to understand where you stand in the marketplace. The gap between your KPIs and theirs reveals opportunity.
  • Establish Tracking Cadence: Daily, weekly, monthly- set a cadence for monitoring KPIs based on which metrics are most volatile. More unstable KPIs require frequent tracking.
  • Connect KPIs to Larger Goals: Employees should understand how their KPI targets relate to the bigger picture. This builds engagement in hitting the metrics.
  • Analyze Trends: Look for performance patterns over longer time periods. Trends often surface issues and point towards untapped opportunities.
  • Set Up Alerts: Platforms like Power BI and Google Analytics allow you to set up alerts when KPIs cross certain thresholds. Act on alerts in real time.
  • Review KPIs in Meetings: Make examining latest KPIs a fixture in weekly or monthly leadership meetings. Discuss opportunities and issues revealed.
  • Build Strategies Around KPIs: Use key metrics to guide strategy and innovation. If retention is lagging, brainstorm ways to enhance the customer experience.
  • Incentivize KPI Achievement: Tie bonuses and other incentives to achievement of key performance indicators. Motivate employees to focus on the metrics.
  • Revisit and Refresh KPIs: As strategies evolve and the market changes, ensure KPIs are still aligned with core goals. Retire or replace outdated metrics.


For finance and insurance companies, tracking key performance indicators is non-negotiable. KPIs deliver irreplaceable visibility into the health of the business, progress towards strategic goals, competitive standing, and opportunities for growth. Leaders must carefully define and monitor the metrics most vital to their specific organization and industry niche. While neglecting KPIs breeds risk, diligently applying performance data fuels sound decision making, accountability, and innovation. The competitive advantage delivered by KPI-driven management is too powerful to overlook. Every financial institution should start measuring what matters and acting on the insights delivered by key performance indicators.

Experience Spider Impact for Free

Schedule a live demo or claim your free 30-day trial. We’re standing by to either show off Spider Impact or turn your data into a prototype for free.

i ? ?