Insurance KPIs: The Executive Guide to Fueling Sustainable Growth

The Viva Team

Oct 3, 2025

11 min read

Insurance KPIs: The Executive Guide to Fueling Sustainable Growth

At A Glance

Key Performance Indicators (KPIs) are the vital signs of your insurance business—quantifiable metrics that measure how you're performing against your most important objectives. Tracking the right insurance metrics is crucial for making sharp, data-driven decisions that boost efficiency, profitability, and sustainable growth. While the most critical KPIs can vary by business model, benchmark reports show a few stand out as universally essential for steering an insurance company toward success:

Combined Ratio
Net Result
Solvency Ratio
Customer Satisfaction
Gross Written Premium

What are Insurance KPIs?

Think of insurance KPIs as your company's navigation system. They are the specific, quantifiable metrics you track to gauge performance against your most critical business goals. But they're more than just numbers on a dashboard; as one KPMG report highlights, they reveal what's truly important for steering your company and understanding its full potential. By monitoring the right KPIs—from sales growth and customer retention to claims processing times—you get a clear, real-time picture of your operational health, helping you pinpoint strengths, tackle weaknesses, and make the informed decisions that drive sustainable growth.

Why Tracking KPIs for Insurance Matters for Busy Leaders

For busy leaders, the right KPIs cut through the operational noise, transforming gut feelings into data-backed strategy. Instead of getting pulled into day-to-day fires, you can pinpoint exactly what drives growth and what holds it back. This clarity empowers you to make sharp, proactive decisions, steer your team with confidence, and focus your energy on the initiatives that truly move the needle.

KPI Categories for Insurance

Grouping KPIs into core categories gives you a powerful framework for seeing the complete picture of your business health. This approach helps you move beyond surface-level numbers to track performance across every critical function, from financial stability to market expansion.

Here are the key categories to focus on:

Financial Performance
Customer Satisfaction
Operational Efficiency
Risk Management
Market Growth and Share

Financial Performance

Financial KPIs are the bedrock of a healthy insurance business, giving you a clear read on profitability, efficiency, and stability. By focusing on these metrics, you can ensure your company isn't just growing, but growing sustainably. Here are the top five financial KPIs that every insurance leader should have on their dashboard.

1. Combined Ratio

The combined ratio is a core measure of underwriting profitability, calculated by adding your loss and expense ratios. It instantly tells you if your core insurance operations are profitable before investment income—a ratio under 100% means you're winning on underwriting. Executives track this by pulling data on incurred losses, expenses, and earned premiums from their financial and policy administration systems, often using BI dashboards for a real-time view.

Formula: (Incurred Losses + Underwriting Expenses) / Earned Premium = Combined Ratio

For example, if you have $6M in losses and $2.5M in expenses against $10M in earned premium, your combined ratio is 85%.

2. Net Profit Margin

Net profit margin is the ultimate measure of your company's total profitability, showing what percentage of revenue is left after all expenses are paid. This KPI provides the definitive answer to your business's financial health, with a margin above 10% considered very healthy and a clear sign of strong overall performance. Leaders calculate this by dividing net income by total revenue for a given period, typically using financial reporting software to pull precise figures from the income statement.

Formula: Net Income / Total Revenue = Net Profit Margin

For example, if your company generates a net income of $1.2M on $12M of total revenue, your net profit margin is 10%.

3. Gross Written Premium (GWP)

Gross Written Premium represents the total revenue from all insurance policies written within a specific period, before deductions for reinsurance. GWP is a primary indicator of your market share and top-line growth, showing your power to attract new business and expand your footprint. Executives monitor GWP by aggregating premium data from their policy administration and sales systems, benchmarking it against historical trends to gauge momentum.

4. Loss Ratio

The loss ratio measures the percentage of your premium revenue that is paid out to cover claims. It's a critical gauge of your underwriting discipline, as a high ratio can signal that your premiums are too low for the risks you're insuring. Leaders track this by dividing total incurred losses by total earned premiums, pulling real-time data from their claims and accounting systems.

Formula: Incurred Losses / Earned Premiums = Loss Ratio

For example, if you paid out $7M in claims against $10M in earned premiums, your loss ratio is 70%.

5. Solvency Ratio

The solvency ratio measures an insurer's capital adequacy, or its ability to meet all long-term financial obligations. This is a crucial indicator of financial stability that directly impacts your credit rating and regulatory standing, proving you have the reserves to handle major losses. Executives measure this according to regulatory frameworks like Solvency II, which involves calculating available capital versus required capital using specialized financial modeling tools.

Formula: Eligible Own Funds / Solvency Capital Requirement = Solvency Ratio

For example, if your company holds €150M in eligible funds against a regulatory requirement of €100M, your solvency ratio is 150%.

Customer Satisfaction

Customer satisfaction isn't just a feel-good metric; it's a powerful driver of retention, referrals, and long-term profitability. Tracking how customers feel about your service reveals where you're delivering on your promises and where you have opportunities to build even stronger loyalty. Here are the five essential customer satisfaction KPIs that give you a clear, actionable view of your performance.

1. Net Promoter Score (NPS)

NPS measures customer loyalty by asking how likely they are to recommend your company, a KPI highlighted in industry reports as a key non-financial metric. It’s a powerful predictor of future growth, as promoters drive referrals while detractors signal churn risk. Executives measure this by sending a single-question survey and calculating the score based on the percentage of promoters minus detractors.

Formula: % Promoters - % Detractors = Net Promoter Score

For example, if 60% of respondents are promoters (scoring 9-10) and 10% are detractors (scoring 0-6), your NPS is 50.

2. Client Retention Rate

This KPI tracks the percentage of customers who renew their policies, directly reflecting how many choose to stay with you. High retention is the ultimate proof of customer satisfaction—and as one guide notes, it's far more cost-effective than constantly acquiring new clients. Leaders track this by dividing the number of renewed policies by the total number of policies that were up for renewal in a given period.

Formula: (Number of Policies Renewed / Number of Policies Up for Renewal) x 100 = Client Retention Rate

For example, if 900 out of 1,000 policies are renewed, your client retention rate is 90%.

3. Average Time to Settle a Claim

This metric measures the average time it takes to resolve a customer's claim from first notice to final payment. A fast and efficient claims process is a critical moment of truth that builds trust and dramatically boosts customer satisfaction. Executives monitor this by tracking the time elapsed for each claim and calculating the average across all claims in a period.

Formula: (Total Time to Settle All Claims) / (Total Number of Claims) = Average Time to Settle a Claim

For example, if five claims took 10, 12, 8, 15, and 9 days to settle, the average time is 10.8 days.

4. Customer Satisfaction Score (CSAT)

CSAT measures how satisfied customers are with a specific interaction, such as a call with support or the claims filing process. It provides immediate, actionable feedback on service quality, helping you pinpoint and fix friction points in the customer journey. Leaders typically deploy short, post-interaction surveys asking customers to rate their satisfaction on a simple scale.

Formula: (Number of Satisfied Customers / Total Number of Survey Responses) x 100 = Customer Satisfaction Score

For example, if 160 out of 200 respondents rate their experience as "satisfied," your CSAT score is 80%.

5. Problem Resolution Rate

This KPI tracks the percentage of customer issues or complaints that are successfully resolved by your team. A high resolution rate demonstrates your commitment to service and your ability to turn a negative experience into a positive one, strengthening loyalty. Executives measure this by dividing the number of resolved issues by the total number of issues reported within a specific timeframe.

Formula: (Number of Problems Resolved / Total Number of Problems Reported) x 100 = Problem Resolution Rate

For example, if your team resolves 95 out of 100 reported issues, your problem resolution rate is 95%.

Operational Efficiency

Operational efficiency KPIs measure how well you convert resources—time, money, and effort—into results. Streamlining your internal processes doesn't just cut costs; it accelerates growth, improves service quality, and frees up your team to focus on high-value work. Here are the five KPIs that reveal how smoothly your operational engine is running.

1. Expense Ratio

The expense ratio reveals what percentage of your premiums is consumed by operating costs, giving you a direct measure of how lean your operations are and signaling your potential profitability. Leaders track this by dividing total operating expenses by earned premiums, using data from their accounting systems to benchmark against industry averages.

Formula: (Operating Expenses / Earned Premiums) x 100 = Expense Ratio

For example, if your operating expenses are $2M against $10M in earned premiums, your expense ratio is 20%.

2. Underwriting Cycle Time

Underwriting cycle time measures the average time to process a policy application from submission to approval, directly reflecting the speed of your new business pipeline and your ability to convert prospects before they look elsewhere. Executives measure this by tracking the total time spent on all applications within a period and dividing it by the number of applications processed, pulling data from their underwriting and CRM systems.

Formula: Total Days to Process All Applications / Number of Applications Processed = Underwriting Cycle Time

For example, if it took a total of 600 days to process 300 applications, your average underwriting cycle time is 2 days.

3. Administrative Costs Per Policy

This metric breaks down your total administrative overhead to a per-policy cost, showing exactly how efficiently you're managing your book of business and how much profit you protect on every policy. Leaders calculate this by dividing total administrative costs by the number of active policies, using data from their accounting and policy management systems.

Formula: Total Administrative Costs / Number of Policies Outstanding = Administrative Costs Per Policy

For example, if your total administrative costs are $100,000 across 5,000 outstanding policies, your cost per policy is $20.

4. Claims Settlement Ratio

The claims settlement ratio tracks the percentage of claims settled versus the total number received, highlighting the effectiveness of your claims processing workflow and your ability to deliver on your promise to policyholders. Executives monitor this by comparing the number of settled claims to the total claims filed in a period, pulling data from their claims management system.

Formula: (Number of Claims Settled / Total Number of Claims Received) x 100 = Claims Settlement Ratio

For example, if your team settled 450 out of 500 claims received in a quarter, your claims settlement ratio is 90%.

5. Percentage Pending

This KPI measures the proportion of policies stuck in the approval pipeline, acting as an early warning system for workflow bottlenecks that can slow revenue and frustrate new customers. Leaders track this by dividing the number of pending policies by the total number of applications received, using data from their policy administration system to identify and resolve delays.

Formula: (Number of Policies Pending Approval / Total Number of Policy Applications) x 100 = Percentage Pending

For example, if 50 policies are pending out of 1,000 total applications in a month, your percentage pending is 5%.

Risk Management

Risk management KPIs are your shield against uncertainty, measuring your ability to price risk accurately, maintain financial stability, and protect your business from unexpected shocks. Mastering these metrics helps you build a resilient company that thrives in any market condition. Here are the five risk management KPIs that provide a clear view of your company's durability.

1. Claim Frequency

Claim frequency measures the likelihood of a loss by predicting how many claims to expect based on your number of outstanding policies, making it essential for managing cash flow and predicting risk exposure. Executives track this by dividing the number of claims by the number of policies in force, using the trend to adjust underwriting guidelines and ensure rates are aligned with risk.

Formula: Number of Claims / Number of Policies in Force = Claim Frequency

For example, if you have 200 claims across 10,000 active policies, your claim frequency is 2%.

2. Average Cost Per Claim

This metric calculates the average amount paid out for each claim, giving you a clear, actionable insight that is critical for setting accurate rates and forecasting future financial performance. Leaders measure this by dividing the total claims payout by the number of claims, using it to monitor claim severity and adjust reserves as needed.

Formula: Total Claims Payout / Number of Claims = Average Cost Per Claim

For example, if you paid out $500,000 across 250 claims, your average cost per claim is $2,000.

3. Claims Ratio

The claims ratio compares the volume of claims to the premium earned, serving as a powerful anomaly detector that can flag potential fraud or claim processing issues before they escalate. Executives track this by dividing the number of claims by the premium earned for a period, watching for any unusual spikes that warrant a deeper investigation into claims patterns.

Formula: Number of Claims / Insurance Premium Earned = Claims Ratio

For example, if your ratio is typically 0.0003 (300 claims per $1M premium) and it suddenly jumps to 0.0006, it signals a potential issue to investigate.

4. Technical Provisions

Technical provisions represent the funds an insurer must set aside to cover future liabilities from its policies, serving as a direct measure of your financial preparedness for expected claims. As noted in a KPMG analysis, these reserves are a core component of risk management, and leaders calculate them using actuarial models to ensure the company has adequate capital to meet all policyholder obligations.

5. Credit Rating

A credit rating is an independent assessment of your company's financial strength and ability to meet its obligations, which directly impacts your reputation, stakeholder trust, and cost of capital. Executives monitor ratings from agencies like Standard & Poor's or Moody's, using a strong rating to prove financial stability and build confidence in the market.

Market Growth and Share

Market growth KPIs measure your ability to expand your footprint, attract new business, and outpace the competition. Focusing on these metrics ensures your company is not just operating efficiently but actively capturing a larger share of the market. Here are the five essential KPIs for tracking your growth trajectory.

1. Sales Growth Rate

This KPI measures the velocity of your revenue expansion, showing how quickly you're increasing sales and capturing new business. Executives track this by comparing sales figures—either premium value or number of new policies—over specific periods like month-over-month or year-over-year to gauge momentum.

Formula: ((Sales in Current Period - Sales in Previous Period) / Sales in Previous Period) x 100 = Sales Growth Rate

For example, if you sold 1,200 policies this quarter compared to 1,000 last quarter, your sales growth rate is 20%.

2. Market Share

Market share measures your company's slice of the industry pie, indicating your competitive strength and influence within your target market. Leaders measure this by comparing their company's gross written premiums or number of policies against total market data, which is often sourced from industry reports and market research.

Formula: (Your Company's Premiums Written / Total Market Premiums Written) x 100 = Market Share

For example, if your company writes $50M in premiums in a market with a total of $1B in premiums, your market share is 5%.

3. New Policies per Agent

This metric tracks the productivity of your sales team by measuring the average number of new policies each agent sells, helping you identify top performers and scale winning strategies. Executives calculate this by dividing the total number of new policies sold during a period by the number of active agents to assess sales force effectiveness.

Formula: Total Number of New Policies Sold / Number of Agents = New Policies per Agent

For example, if your 10 agents sold 500 new policies in a quarter, you're averaging 50 new policies per agent.

4. Referral Rate

This KPI measures the percentage of new business generated from existing client recommendations, highlighting the power of customer satisfaction as a growth engine. Leaders track this by using their CRM to attribute new clients to their referral source, calculating the rate to understand the impact of organic, word-of-mouth growth.

Formula: (Number of New Clients from Referrals / Total Number of New Clients) x 100 = Referral Rate

For example, if 150 of your 500 new clients last quarter came from referrals, your referral rate is 30%.

5. Bind Rate

Bind rate measures the percentage of quotes that are successfully converted into active policies, revealing how effectively your sales process turns interest into revenue. Executives monitor this by dividing the number of policies bound by the total number of quotes issued, giving them a clear indicator of sales team performance and product competitiveness.

Formula: (Number of Policies Bound / Number of Quotes Issued) x 100 = Bind Rate

For example, if your team issued 400 quotes and bound 100 of them into policies, your bind rate is 25%.

Common Pitfalls for Insurance KPI Management

Even the sharpest leaders can fall into common KPI traps that undermine their strategy. The most frequent misstep is tracking too many metrics at once—a KPMG report noted that insurers had to “condense” their KPI count after a surge in tracking diluted their focus. This often leads to chasing vanity metrics that look impressive but don’t drive outcomes, or relying on blended data that masks poor performance in key channels. Other pitfalls include inconsistent definitions that make cross-team analysis impossible and a lack of clear ownership that leaves valuable data sitting idle. For a busy executive, the root challenge is time. You simply don’t have the bandwidth to police definitions, assign accountability, and separate the signal from the noise, which is how a well-intentioned strategy gets derailed.

How an Executive Assistant from Viva Streamlines KPI Tracking

A Viva EA, drawn from the top 0.2% of Latin American talent and trained in our four-week business bootcamp, can transform KPI management from a time-sink into a strategic asset. This frees you to focus on high-impact decisions, not data entry. Your EA will: