HR KPIs: top 26 key indicators for human resources
The 26 HR KPIs that connect workforce data to business outcomes, from cost per hire to engagement, each with its formula and a current benchmark for HR leaders.
A single point of movement in your combined ratio can be the difference between an underwriting profit and a loss. In 2025, the US property and casualty industry hit a combined ratio of 92.9%, its best in a decade, and the carriers that got there were the ones watching the right numbers closely. The rest found out too late.
This guide covers the 28 insurance KPIs that actually drive performance, across financial, customer, claims, underwriting, and risk categories. Each one comes with its formula and a current benchmark, whether you write property and casualty, life, or non-life lines.
Key takeaways
- A combined ratio below 100% means an underwriting profit. The US property and casualty industry hit 92.9% in 2025, its best in a decade, per Verisk and APCIA.
- The US P&C industry posted an underwriting gain of roughly $63 billion in 2025, and US P&C insurers typically run an expense ratio in the 25% to 28% range.
- Policy renewal rate captures what a separate retention metric would, so track it as the primary loyalty indicator. Frederick Reichheld at Bain found a 5% lift in retention can raise profits 25% to 95%.
- Straightforward claims often settle in days, while complex ones can take 30 to 60 days or more. US claims settlement ratios commonly sit in the mid-90s percent range.
- Loss reserve adequacy, solvency ratio, reinsurance utilization and cybersecurity preparedness work as key risk indicators, flagging exposure before it turns into a solvency or reputational problem.
- Most insurers already have the data, but policy admin, claims and finance sit in separate systems. Centralizing those sources is what makes real-time loss ratio and claims tracking possible.
- Financial KPIs: Premium Growth Rate, Loss Ratio, Combined Ratio, Loss Reserve Adequacy, Expense Ratio, Solvency Ratio, Investment Yield, Underwriting Profit Margin
- Customer-centric KPIs: Policy Renewal Rate, Customer Acquisition Cost, Customer Churn Rate, Policyholder Satisfaction, Channel Effectiveness
- Claims management KPIs: Claims Processing Time, Claims Frequency, Claims Denial Rate, Loss Severity, Loss Retention Ratio, Claims Settlement Ratio
- Underwriting KPIs: Underwriting Efficiency
- Digital transformation KPIs: Digital Transformation Progress
- Risk management KPIs: Reinsurance Utilization
- Compliance and security KPIs: Regulatory Compliance, Cybersecurity Preparedness
- Product and sales KPIs: Average Policy Value, Sales Growth Rate, Policies In-Force Per Agent
Each KPI below includes its formula and a current benchmark.
Financial insurance KPIs
Premium growth rate
The Premium Growth Rate measures the percentage change in premium revenue over time. Monitoring this KPI helps evaluate marketing and sales performance. According to Swiss Re, US P&C premium growth is expected to run around 5% in 2025 before easing toward 4% in 2026.
Formula = ((Current Premiums – Previous Premiums) / Previous Premiums) * 100
Loss ratio
The Loss Ratio measures the ratio of claims paid to premiums earned, indicating underwriting performance. In 2025, the US property and casualty industry posted a combined ratio near 92.9%, a decade low, per Verisk and APCIA, with the loss component well below crisis-year levels. A lower loss ratio reflects better underwriting and higher profitability.
Formula: (Claims Paid / Premiums Earned) * 100
Combined ratio
The Combined Ratio evaluates overall profitability, considering both expenses and losses. A ratio below 100% means an underwriting profit. The US P&C industry hit 92.9% in 2025, its strongest in a decade. A lower ratio indicates higher profitability.
Formula: (Loss Ratio + Expense Ratio) * 100
Loss reserve adequacy
This KPI assesses whether insurers have sufficient reserves to cover potential claims. US property and casualty insurers hold well over $800 billion in loss reserves, with policyholder surplus reaching about $1.2 trillion in 2025 per Verisk. Adequate reserves ensure financial stability and reliability.
Formula: (Loss Reserves / Total Claims) * 100
Expense ratio
The Expense Ratio measures operational efficiency by comparing expenses to revenue. A lower ratio indicates cost-effective operations. US P&C insurers typically run an expense ratio in the 25% to 28% range, a meaningful share of every premium dollar.
Formula: (Operational Expenses / Premiums Earned) * 100
Solvency ratio
This KPI shows whether an insurer holds enough assets to cover what it owes policyholders.
Formula: (Total Assets / Total Liabilities)
Investment yield
Investment Yield measures the return an insurer earns on invested premiums and reserves.
Formula: (Investment Income / Total Investment Assets) * 100
Underwriting profit margin
This KPI measures the profitability of underwriting activities. In 2025, the US P&C industry alone posted an underwriting gain of roughly $63 billion, one of its strongest results in years, according to Verisk and APCIA.
Formula: (Premiums Earned – Claims Paid – Operational Expenses) / Premiums Earned * 100
Customer-centric KPIs
Policy renewal rate
This KPI measures the percentage of policies renewed upon expiration, the clearest signal of customer loyalty in insurance. It captures what a separate retention-rate metric would, so track it as your primary loyalty indicator. Research by Frederick Reichheld at Bain & Company found that a 5% lift in retention can raise profits anywhere from 25% to 95%, depending on the line and margin structure. High renewal rates point to satisfied policyholders and predictable revenue.
Formula: (Renewed Policies / Total Policies Expiring) * 100
Customer acquisition cost
This KPI calculates the cost of acquiring a new customer, helping optimize marketing and sales budgets.
Formula: (Total Marketing and Sales Costs / Number of New Customers)
Customer churn rate
Churn Rate shows the percentage of customers who do not renew. In insurance, even a few points of churn compounds fast, because acquiring a new policyholder costs far more than keeping an existing one. This is where predictive models earn their keep: our customer churn prediction case study shows how machine learning flags at-risk customers early enough to actually save the renewal.
Formula: (Lost Customers / Total Customers at Start of Period) * 100
Policyholder satisfaction
Direct feedback from policyholders gauges satisfaction. Satisfied customers are more likely to renew and advocate for your company.
Formula: (Satisfied Customers / Total Survey Respondents) * 100
Channel effectiveness
This KPI measures the efficiency of distribution channels to optimize marketing focus.
Formula: (Policies Sold via Channel / Total Policies Sold) * 100
Claims management KPIs
Claims processing time
Measures the average time to process claims. Faster processing leads to higher customer satisfaction. Straightforward claims often settle in days, while complex ones can take 30 to 60 days or more, so faster cycle times are a direct customer-satisfaction lever.
Claims frequency
Indicates how often claims are filed, helping assess risk and set premiums.
Formula: (Total Claims / Total Policies in Force)
Claims denial rate
Shows the percentage of rejected claims. High rates may indicate issues in claims management.
Formula: (Denied Claims / Total Claims) * 100
Loss severity
Measures the average cost of claims, supporting risk management and pricing strategies.
Formula: (Total Claim Amount / Total Claims)
Loss retention ratio
Indicates the share of claims the insurer keeps before reinsurance, which shows how much risk sits on its own balance sheet.
Formula: (Retained Claims / Total Claims) * 100
Claims settlement ratio
Measures the percentage of claims successfully settled. In the US, claims settlement ratios commonly sit in the mid-90s percent range.
Formula: (Settled Claims / Total Claims) * 100
Underwriting KPIs
Underwriting efficiency
Assesses how effectively underwriters evaluate and price risks, critical for sustainable profitability.
Formula: (Underwriting Expenses / Premiums Earned) * 100
Digital transformation KPIs
Digital transformation progress
Tracks the adoption of digital technologies in insurance. Accenture reports that 75% of insurance executives believe AI boosts profitability, which is why more carriers are investing in machine learning models to price risk and flag fraud faster.
Formula: (Digital Transformation Achievements / Total Transformation Goals) * 100
Risk management KPIs
Reinsurance utilization
Measures how much risk is ceded to reinsurers. The global reinsurance market runs well into the hundreds of billions of dollars annually and keeps growing as carriers manage catastrophe and liability exposure.
Formula: (Reinsured Claims / Total Claims) * 100
Compliance and security KPIs
Regulatory compliance
Ensures adherence to industry regulations, avoiding fines and legal issues.
Cybersecurity preparedness
Assesses readiness against cyber threats. Global cybercrime costs have climbed into the trillions of dollars annually, making cyber readiness a core insurance risk metric, not an IT afterthought, highlighting the importance of robust cybersecurity measures.
Product and sales KPIs
Average policy value
Calculates the average value of insurance products, helping identify upsell and cross-sell opportunities.
Formula: (Total Policy Value / Total Number of Policies)
Sales growth rate
Measures the growth of insurance sales, tracking new and renewed policies.
Formula: ((Current Sales – Previous Sales) / Previous Sales) * 100
Policies in-force per agent
Divides the total active policies by the number of agents to measure agent productivity and support growth strategies.
Formula: (Total Policies In-Force / Total Agents)
By tracking these KPIs, insurers can improve operations, customer service, financial stability, and risk management, positioning themselves for success in 2024 and beyond.
How to define the best insurance KPIs?
Developing effective KPIs requires a deep understanding of processes and interdependencies. Insurance companies often face data silos, making consolidated insights a challenge. The same principles apply across financial services. For the sister-industry view, see our guide to the 25 KPIs banking leaders use to track performance, which covers profitability, asset quality, and customer health. Consider these steps:
Determine objectives – Define clear goals and measure progress to create meaningful KPIs.
Look beyond single processes – Consider organizational factors beyond individual processes for accurate metrics and data controls.
Centralize data – Break down silos and unify data sources to enable better insights and decision-making.
Use pre-built templates – Start from ready-made visualization templates to get to working dashboards faster.
How can Brickclay help?
Twenty-eight KPIs across financial, claims, underwriting, and risk categories is a lot to watch, and most insurers already have the data. The problem is where it lives: policy admin in one system, claims in another, finance in a third. Nobody sees the full picture in time to act on it.
Brickclay connects those systems into one view. Our business intelligence work builds dashboards that track loss ratio, combined ratio, renewal rate, and claims performance in real time, so your underwriters and executives are working from the same live numbers instead of month-old reports.
For carriers sitting on years of policy and claims data, our data analytics services turn that history into forecasts: which policies will lapse, where claims severity is climbing, and which segments are worth pursuing.
Ready to see your insurance KPIs in one place? Talk to our team about a dashboard built around the metrics that move your business.
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FAQ
The best KPIs for insurance companies include financial, customer-centric, claims management, underwriting, digital transformation, and risk management KPIs. These metrics help insurers monitor insurance financial performance, optimize operations, and enhance customer satisfaction.
Tracking key performance indicators for insurers such as premium growth rate, loss ratio, combined ratio, and underwriting profit margin enables better insurance financial performance analysis. These KPIs guide decisions that enhance profitability and operational efficiency.
The loss ratio measures the percentage of claims paid relative to premiums earned, reflecting underwriting performance. The combined ratio adds the expense ratio to the loss ratio, giving a complete view of insurance profitability by factoring in operational costs.
Insurers can reduce the expense ratio by cutting manual steps, adopting digital tools, and using insurance business intelligence dashboards. This approach helps monitor operational costs, optimize workflows, and improve overall insurance profitability.
The policy renewal rate measures customer retention and loyalty. A higher renewal rate indicates satisfied policyholders and points to more predictable premium revenue and long-term profitability.
Measuring insurance digital transformation strategy involves tracking KPIs such as digital adoption progress, automation efficiency, and AI-driven insights. Tools like BI dashboards help quantify digital initiatives and their impact on insurance performance metrics.
Key claims management efficiency metrics include claims processing time, claims frequency, claims denial rate, and claims settlement ratio. Monitoring these KPIs ensures faster claim resolutions and higher customer satisfaction.
AI tools for insurance analytics and insurance business intelligence dashboards are effective for real-time KPI tracking. These tools pull policy, claims, and finance data into one live view.
Insurance business intelligence dashboards allow insurers to visualize KPIs in real-time, track trends, and make decisions from live performance data. They help improve operational efficiency and enhance financial and customer performance.
Non-life and property and casualty insurers focus most on loss ratio, combined ratio, claims settlement ratio, and loss reserve adequacy. These metrics measure underwriting profitability and claims-paying strength, which matter more in P&C than in life insurance because claims are frequent and variable. A combined ratio below 100% signals an underwriting profit.
The main key risk indicators for insurers include loss reserve adequacy, solvency ratio, reinsurance utilization, and cybersecurity preparedness. These KRIs flag exposure before it becomes a solvency or reputational problem, helping insurers stay compliant and financially stable under stress.
Insurance-specific KPIs are best tracked through business intelligence platforms like Power BI and Tableau, connected to policy, claims, and financial systems. The right setup consolidates siloed data into real-time dashboards so underwriters, claims teams, and executives all work from the same numbers.
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