10 Great Examples of Insurance OKRs

Category: Insurance OKRs.

Insurance is an effective way of protecting valuables against unforeseen circumstances. Anything that you value needs an insurance cover so that you may not have to bear the burden of unexpected losses entirely upon your shoulders.

The most important part of the insurer’s job lies in the assessment of risk and equating a definite monetary value to such possible losses in various events. If such assessments do not turn out to be accurate, there is a high probability of an erroneous policy causing unsatisfactory service to the policyholder as well as resulting in poor sustainability of the company in the long run.

In order to efficiently serve the policyholders and value their assets, insurance companies tend to set targets for maximizing performance and set key indicators of expected performance. Through OKRs, the insurance company can have a clear and definite goal of assessing risks efficiently and providing rewarding services to their policyholders.

Whether it’s an insurance against something as unpredictable as a natural calamity or a common kind of loss like pilferage/theft, OKRs help in minimizing inaccuracy, eliminating chaos and offer a smooth functioning of the day to day operations of insurance companies. By setting pre-determined goals and taking the effort towards the fulfilment of such goals, a company can easily find deviations and errors. This, in turn, helps in discovering effective solutions for controlling such deviations and managing the operations of the company in an organized, iterative and productive manner, also leading to greater satisfaction for the customers. Top ten examples of how great insurance companies incorporate OKRs in their business operations are as follows:

#1: Customer Experience Department

Description: This objective helps in gaining increased customer retention by reducing the customer churn, decreasing policy lapse ratio and providing customer appreciation dinners to retain the customers for a longer run.

objective icon1Objective

David Griffin

Improve customer retention

29%

Target Date: Annual-2021

Visibility: All Employees

key-icon1Key Results

Decrease the policy lapse ratio from 27% to 10%

Q1-2021decrease kpi1 Policy lapse ratio
27% 10% 25%

12%

Decrease average customer churn rate from 8% to 4%

Mar 2021 – Sep 2021 img-roger-smith-assignee1 decrease kpi2 Average customer churn rate
8% 4% 7%

25%

Invite 50 long term clients to a customer appreciation dinner

Annual-2021 img-alice-assignee1 increase kpi1 Customer appreciation dinner
0 50 25

50%

#2: Claims and Processing

Description: The faster the claims get processed, greater would be the satisfaction of customers. This objective focuses on efficiently processing claims and conducting inspections without too much delay.

objective icon2Objective

David Griffin

Increase the speed of claims processing

25%

Target Date: Annual-2021

Visibility: All Employees

key-icon2Key Results

Decrease average time taken for claim settlement from 48 hours to 36 hours

Feb-2021 img-jack-assignee1 decrease kpi3 Claim settlement cycle
48 Hour(s) 36 Hour(s) 45 Hour(s)

25%

Reduce inspection turnaround time from 48 hours to 24 hours

Jun 2021 – Sep 2021 decrease kpi4 Average turnaround time
48 Hour(s) 24 Hour(s) 43 Hour(s)

21%

Increase digitization of documentary evidence submission from 25% to 50%

Annual-2021 img-alice-assignee2 increase kpi2 Digitalization of documents submission
25% 50% 32%

28%

#3: Agency Management

Description: Increasing the number of trained insurance agents would help in securing greater market share in the industry.

objective icon3Objective

David Griffin

Increase revenue through Agents

21%

Target Date: Annual-2021

Visibility: All Employees

key-icon4Key Results

Increase the number of policyholders in the southern region from 54K to 80k

Q1-2021 img-benny-powell-assignee1 increase kpi3 Number of policyholders
54K 80K 59.26K

20%

Increase revenue from Southern region from $100 million to $125 million

Q1-2021 img-bertram-assignee1 increase kpi4 Revenue
$100M $125M $105.98M

24%

Increase number of deals closed by agents from 10 to 50 per quarter

Q1-2021 img-bertram-assignee2 increase kpi5 Bind rate
10 50 18

20%

#4: Human Resources

Description: Hiring a large number of agents would definitely help in securing a larger number of customers. At the same time, the question is whether the agents are trained enough to attract the targeted consumer segment.

objective icon4Objective

David Griffin

Increase Hiring and extensive training for insurance agents

36%

Target Date: Annual-2021

Visibility: All Employees

key-icon5Key Results

Increase number of data scientist from 10 to 30

Annual-2021 img-bertram-assignee3 increase kpi6 Number of data scientist
10 30 14

20%

Increase number of training programs to new agents from 1 to 3 in a quarter

Annual-2021 img-benny-powell-assignee2 increase kpi7 Number of training programs
1 3 2

50%

Increase the number of agents achieving targets from 50% to 75%

Annual-2021 img-benny-powell-assignee3 increase kpi8 Number of against achieving targets
50% 75% 60%

40%

#5: Accounts and Financial Management

Description: This objective focuses on taking measures to improve the financial performance of the company by cutting down operational costs.

objective icon5Objective

David Griffin

Reduce costs by enhancing operational efficiency

18%

Target Date: Annual-2021

Visibility: All Employees

key-icon6Key Results

Decrease the average processing cost per application from $300 to $250

Annual-2021 img-roger-smith-assignee2 decrease kpi5 Average processing cost per application
$300 $250 $293.6

13%

Decrease financial reporting cost from $20k to $15k in Q2

Q1-2021 img-jack-assignee2 decrease kpi6 Reporting costs
$20 $15 $18.88

23%

Increase Revenue Per Client / member (RPC) from $700 to $800

Annual-2021 img-alice-assignee3 increase kpi9 Revenue per client
$700 $800 $717.99

18%

#6: Branch Operations

Description: It is essential to follow up with customers who default in payment of premiums which would help in reducing the rate of customer dropouts. By reducing this rate, the company can retain customers who would otherwise turn into potential defaulters.

objective icon6Objective

David Griffin

Improve customer experience in branch

24%

Target Date: Annual-2021

Visibility: All Employees

key-icon7Key Results

Increase customer satisfaction score from 6 to 9

Q1-2021 img-benny-powell-assignee4 increase kpi10 Customer satisfaction score
6 9 7

33%

Reduce turnaround time for consumer complaints from 36 hours to 12 hours

Q1-2021 decrease kpi7 Average turnaround time
36 Hour(s) 12 Hour(s) 34 Hour(s)

8%

Increase number of referrals from existing customers from 20% to 40%

Annual-2021 img-adams-assignee1 increase kpi11 Number of referrals
20% 40% 26%

30%

#7: Accounts and Financial Management

Description: Accounts and finance play a major role in all industries. The financial stability and profitability of a company is measured by its key financial indicators. This objective focuses on improving financial stability and profitability.

objective icon7Objective

David Griffin

Improve financial performance and profitability

41%

Target Date: Annual-2021

Visibility: All Employees

key-icon8Key Results

Increase the net income ratio from 0.2 per dollar to 0.45 per dollar

Q1-2021 img-benny-powell-assignee5 increase kpi12 Net income ratio
$0.2 $0.45 $0.24

16%

Decrease financial transactions error rate from 0.08% to 0.05% by Q2

Q1-2021 img-roger-smith-assignee3 decrease kpi8 Transactions error rate
0.08% 0.05% 0.07%

33%

Increase sales growth by new policies and renewals from 40% to 60%

Q1-2021increase kpi13 Sales growth
40% 60% 45%

25%

Decrease debt to equity ratio from 1.4 to 0.8 by Q2

Q1-2021 img-roger-smith-assignee4 decrease kpi9 Debt to equity ratio
1.4 0.8 1.1

50%

#8: Accounts and Financial Management

Description: This objective focuses on taking measures to increase the profitability of the company by diversifying investments as well as increasing revenue from operations.

objective icon8Objective

David Griffin

Increase revenue from operations and improve investment management

20%

Target Date: Annual-2021

Visibility: All Employees

key-icon9Key Results

Increase quarterly company revenue from $250M to $300M

Annual-2021 img-jack-assignee3 increase kpi14 Revenue
$250M $300M $257.51

15%

Increase investment in mutual funds from 50% to 70%

Annual-2021 img-roger-smith-assignee5 increase kpi15 Investment in mutual funds
50% 70% 54%

20%

Increase net income ratio (based on each dollar of premium) from 6% to 10%

Q1-2021 img-bertram-assignee4 increase kpi16 Net income ratio
6% 10% 7%

25%

#9: Accounts and Financial Management

Description: Insurance companies need to effectively channelize their loss control programs in order to limit their liability and increase their profitability on the event of claims. At the same time, such programs should not disrupt consumer satisfaction.

objective icon9Objective

David Griffin

Increase the efficiency of loss control programs

25%

Target Date: Annual-2021

Visibility: All Employees

key-icon10Key Results

Decrease the loss ratio from 40% to 30% in the current quarter

Q1-2021 decrease kpi10 Loss ratio
40% 30% 36%

40%

Decrease the cost of risk allocation contracts from 35% to 28% of the budget

Q1-2021 img-roger-smith-assignee6 decrease kpi11 Cost of risk allocation contracts
35% 28% 34%

14%

Increase the underwriting surplus for loss coverage from 0% to 5%

Q1-2021 img-adams-assignee2 increase kpi17 Underwriting surplus
0% 5% 1%

20%

#10: Branch Operations

Description: This objective focuses on minimizing errors during branch operations and increasing operational productivity.

objective icon10Objective

David Griffin

Minimize operational errors

13%

Target Date: Annual-2021

Visibility: All Employees

key-icon11Key Results

Decrease billing error rate from 0.5% to 0.02%

Q1-2021 img-bertram-assignee5 decrease kpi12 Billing error rate
0.5% 0.02% 0.41%

19%

Increase automation of PoS(Policy owner services) from 35% to 50%

Q1-2021 img-benny-powell-assignee6 increase kpi18 Policy owner services
35% 50% 36%

7%

Conclusion

Setting great OKRs starts right from the top management of an organization and gets delegated to the branch level and can be expanded down. Insurance sector protects the consumers from unforeseen liabilities and losses. In the same manner, setting up these 10 OKRs could protect any insurance company from major failures and losses, enabling it to perform better than the competitors. A great OKR software not only helps in strategizing the goals of your business for optimal performance but also helps in better productivity of employees. Try reading some of the other great OKR examples on Customer experience OKRs, Banking OKRs,Sales OKRs, Marketing OKRs, HR and Engineering OKRs.

 

 

Related Articles