12 Most Important Insurance KPIs


The top KPIs in the Insurance industry are essential for measuring underwriting performance, customer satisfaction, and financial stability. Underwriting-related metrics, such as loss ratio, combined ratio, and claims frequency, provide insights into the effectiveness and profitability of insurance products.

Customer-related KPIs, including satisfaction scores, retention rates, and net promoter scores, help gauge the acceptance and loyalty of insurance customers.

This article showcases the Most Critical 12 KPIs for Insurance and Associated Benchmarks.

1. Solvency Ratio

The Solvency Ratio is a critical financial ratio that measures a company's ability to meet its long-term obligations.

A higher ratio indicates robust financial health, while a lower ratio may signal potential liquidity issues. This KPI influences business outcomes such as creditworthiness, investment attractiveness, and operational efficiency.

Companies with strong solvency ratios can secure better financing terms and invest in growth initiatives without excessive risk. Learn more about the Solvency Ratio KPI.

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We have 11 benchmarks for this KPI available in our database.

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What is the standard formula?
(Total Assets / Total Liabilities) * 100


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2. Customer Retention Rate

Customer Retention Rate (CRR) is a critical performance indicator that reflects the ability of a business to retain customers over a specific period.

High CRR correlates with increased customer loyalty, reduced churn, and improved profitability. By focusing on this metric, organizations can enhance operational efficiency and drive sustainable growth.

A robust CRR can also lead to better forecasting accuracy and more effective resource allocation. Learn more about the Customer Retention Rate KPI.

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We have 8 benchmarks for this KPI available in our database.

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What is the standard formula?
(Number of Customers at End of Period - Number of New Customers Acquired During Period) / Number of Customers at Start of Period * 100


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3. Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) is a pivotal metric that quantifies the total revenue a business can expect from a single customer account throughout the relationship.

It directly influences strategic alignment, customer acquisition costs, and overall financial health. By understanding CLV, executives can make data-driven decisions to optimize marketing spend and enhance customer retention strategies.

A higher CLV indicates effective customer engagement and loyalty, while a lower CLV may signal operational inefficiencies or misaligned offerings. Learn more about the Customer Lifetime Value (CLV) KPI.

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We have 2 benchmarks for this KPI available in our database.

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4. Investment Income Ratio

Investment Income Ratio serves as a vital performance indicator for assessing the efficiency of an organization's investment strategies.

It directly influences financial health, operational efficiency, and overall ROI metrics. A higher ratio suggests effective capital allocation, while a lower ratio may indicate underperformance in asset management.

Companies that consistently monitor this KPI can better align their investment strategies with long-term business outcomes. Learn more about the Investment Income Ratio KPI.

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We have 1 benchmark for this KPI available in our database.

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What is the standard formula?
(Investment Income / Earned Premiums) * 100


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5. Digital Adoption Rate

Digital Adoption Rate measures how effectively users embrace new technologies, impacting operational efficiency and financial health.

High adoption rates correlate with improved user satisfaction and reduced training costs, while low rates can hinder strategic alignment and delay ROI metrics. Organizations that prioritize digital adoption often see enhanced forecasting accuracy and data-driven decision-making.

This KPI serves as a leading indicator of overall business performance, guiding management reporting and resource allocation. Learn more about the Digital Adoption Rate KPI.

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We have 6 benchmarks for this KPI available in our database.

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What is the standard formula?
(Number of Digital Transactions / Total Number of Transactions) * 100


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6. Customer Satisfaction Index

Customer Satisfaction Index (CSI) serves as a vital gauge of customer loyalty and engagement, directly influencing retention rates and revenue growth.

High CSI scores correlate with increased repeat purchases and positive word-of-mouth, which are essential for sustainable business outcomes. Organizations leveraging CSI effectively can identify pain points and enhance operational efficiency.

By embedding this KPI within a robust KPI framework, executives can drive data-driven decision-making and align strategies with customer expectations. Learn more about the Customer Satisfaction Index KPI.

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We have 5 benchmarks for this KPI available in our database.

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7. Cross-Selling Ratio

Cross-Selling Ratio measures the effectiveness of selling additional products or services to existing customers, directly impacting revenue growth and customer retention.

A higher ratio indicates successful customer engagement and can lead to increased customer lifetime value. This KPI also helps identify opportunities for product bundling and enhances overall financial health.

Companies leveraging this metric can forecast sales more accurately, align marketing strategies, and optimize resource allocation. Learn more about the Cross-Selling Ratio KPI.

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We have 1 benchmark for this KPI available in our database.

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What is the standard formula?
Total Number of Additional Products Sold / Total Number of Customers


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8. Regulatory Compliance Rate

Regulatory Compliance Rate is a critical KPI that reflects an organization's adherence to laws and regulations, impacting financial health and operational efficiency.

High compliance rates can lead to reduced legal risks, improved brand reputation, and enhanced customer trust. Conversely, low rates may indicate potential liabilities and operational weaknesses.

Organizations that prioritize compliance often see better strategic alignment and improved business outcomes. Learn more about the Regulatory Compliance Rate KPI.

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We have 1 benchmark for this KPI available in our database.

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9. Employee Productivity

Employee Productivity is a critical performance indicator that reflects the efficiency and effectiveness of a workforce.

It influences key business outcomes such as operational efficiency, cost control, and overall financial health. Organizations that optimize employee productivity can achieve higher ROI and better strategic alignment with their goals.

Tracking this KPI allows for data-driven decision-making, enabling leaders to forecast accurately and implement necessary changes. Learn more about the Employee Productivity KPI.

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We have 8 benchmarks for this KPI available in our database.

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10. Net Promoter Score (NPS)

Net Promoter Score (NPS) serves as a pivotal indicator of customer loyalty and satisfaction, directly influencing retention and referral rates.

High NPS correlates with increased customer lifetime value and lower churn, driving sustainable revenue growth. Organizations leveraging NPS effectively can align their strategies with customer expectations, enhancing operational efficiency and overall financial health.

This KPI acts as a leading indicator for future business outcomes, allowing executives to track results and make data-driven decisions. Learn more about the Net Promoter Score (NPS) KPI.

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We have 32 benchmarks for this KPI available in our database.

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11. Customer Onboarding Time

Customer Onboarding Time is critical for assessing how efficiently new clients are integrated into the business.

A shorter onboarding period enhances customer satisfaction, leading to improved retention rates and quicker revenue realization. This KPI influences operational efficiency and overall financial health, as delays can hinder cash flow and resource allocation.

Organizations that optimize onboarding processes often see a direct correlation with increased ROI metrics and better strategic alignment across departments. Learn more about the Customer Onboarding Time KPI.

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We have 1 benchmark for this KPI available in our database.

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What is the standard formula?
Total Onboarding Time / Total Number of New Customers


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12. New Product Introduction Rate

New Product Introduction Rate (NPIR) is a critical KPI that gauges how effectively a company brings new products to market.

This metric influences financial health, operational efficiency, and overall ROI. A high NPIR indicates a robust innovation pipeline, while a low rate may signal stagnation or misalignment with market needs.

Companies with strong NPIRs often experience accelerated revenue growth and improved market share. Learn more about the New Product Introduction Rate KPI.

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We have 3 benchmarks for this KPI available in our database.

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What is the standard formula?
(Total New Products Launched / Total Products Offered) * 100


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These 12 Insurance KPIs were selected from the KPI Depot database to provide a balanced view of financial stability, customer engagement, and operational efficiency. They span solvency metrics, customer lifecycle measures, and digital adoption rates, ensuring coverage of both leading and lagging indicators critical to insurance performance. This subset captures the full customer journey and regulatory environment, aligning financial health with market responsiveness.

Track Solvency Ratio alongside Investment Income Ratio to assess capital adequacy and asset performance; a rising Solvency Ratio with declining Investment Income Ratio may indicate conservative asset allocation limiting returns. Monitor Customer Retention Rate in conjunction with Customer Lifetime Value (CLV)—divergence between these signals shifts in customer loyalty or revenue per customer. Digital Adoption Rate paired with Customer Onboarding Time highlights operational efficiency; slow onboarding despite high digital adoption suggests process bottlenecks rather than technology gaps.

Prioritize Solvency Ratio and Customer Retention Rate first, as these KPIs rely on readily available financial and customer data and provide immediate insight into risk and revenue sustainability. Follow with CLV to link retention to long-term value. The full set of Insurance KPIs, including advanced operational and compliance metrics, is available in the KPI Depot database for deeper analysis and benchmarking.

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Related Best Practices


These best practice documents below are available for individual purchase from Flevy , the largest knowledge base of business frameworks, templates, and financial models available online.


KPI Depot (formerly the Flevy KPI Library) is a comprehensive, fully searchable database of over 20,000+ KPIs and 30,000+ benchmarks. Each KPI is documented with 12 practical attributes that take you from definition to real-world application (definition, business insights, measurement approach, formula, trend analysis, diagnostics, tips, visualization ideas, risk warnings, tools & tech, integration points, and change impact).

KPI categories span every major corporate function and more than 150+ industries, giving executives, analysts, and consultants an instant, plug-and-play reference for building scorecards, dashboards, and data-driven strategies.

Our team is constantly expanding our KPI database and benchmarks database.

Got a question? Email us at support@kpidepot.com.



Each KPI in our knowledge base includes 12 attributes.

KPI Definition

A clear explanation of what the KPI measures

Potential Business Insights

The typical business insights we expect to gain through the tracking of this KPI

Measurement Approach

An outline of the approach or process followed to measure this KPI

Standard Formula

The standard formula organizations use to calculate this KPI

Trend Analysis

Insights into how the KPI tends to evolve over time and what trends could indicate positive or negative performance shifts

Diagnostic Questions

Questions to ask to better understand your current position is for the KPI and how it can improve

Actionable Tips

Practical, actionable tips for improving the KPI, which might involve operational changes, strategic shifts, or tactical actions

Visualization Suggestions

Recommended charts or graphs that best represent the trends and patterns around the KPI for more effective reporting and decision-making

Risk Warnings

Potential risks or warnings signs that could indicate underlying issues that require immediate attention

Tools & Technologies

Suggested tools, technologies, and software that can help in tracking and analyzing the KPI more effectively

Integration Points

How the KPI can be integrated with other business systems and processes for holistic strategic performance management

Change Impact

Explanation of how changes in the KPI can impact other KPIs and what kind of changes can be expected


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