Performance Measures & KPI's in the Insurance Industry
Corporate Training
“What get’s measured, gets done”
Anon
“If you can’t measure what’s important, you make what you can count important”
James Willbank, US Army Advisor, Vietnam 1965
Performance measurement is a fundamental activity for any business: part of governance and part of risk management, but you need to measure the right things if you want an effective “Executive dashboard”.
We are in a financial business so we need to understand the core financial measures, which means we need to revise the industry financial dynamics and budget process so we understand the activities that generate the numbers in the first place, and what the measures will tell us about health of the business. The most important is profit – which is also the most difficult because of the issue of timing: when do you recognise “profit”……? This is especially true of long term/life business.
A business should identify both lagging and leading Key Performance Indicators: it’s not enough to know where you have come from, you need indicators of the likely direction of travel. Whilst insurance concentrates on financial and other quantitative indicators, we should be ready to look beyond the numbers.
Who should attend?
Managers, Team Leaders and all those seeking to expand their skills on the topic. Wherever you are on your career journey, developing and maintaining your personal and professional skills helps to ensure you continue to grow and thrive.
Our range of Management, Leadership and Skills courses are designed to equip you with skills to optimise your personal performance, lead your team effectively and strengthen your business..
Summary
Duration: 1 Day
No of attendees: 12-16
Format: Online - Virtual/ Face-to-Face Delivery
CPD: Recognised
Learning Objectives
The aim of this module:
- Describe the financial characteristics and cash flow cycle that make insurance unique.
- Explain the financial treatment of insurance assets and liabilities.
- Navigate the main financial statements.
- Summarise the basic budgeting process: the source of your KPIs.
- Describe the key insurance ratios and their use.
- Outline the other Key Performance Indicators an insurer can employ.
Learning outcomes
By the end of the course the delegates will be able to:
- The insurance “positive” cash flow cycle
- The mechanics: premium (written v earned), reinsurance, claims, acquisition costs and management expenses
- Net or gross?
- Setting the targets: the budgeting Process
- Interpreting the profit and loss/income statement and balance sheet
- How and when profit is recognised in life and non-life?
- The key ratios: RoI/RoC/RoE, the combined ratio, ultimate loss ratio, operating ratios, solvency capital margin
- For a life business, what is embedded value and what does it tell us?
- Key Performance Indicators AND Key Risk Indicators
- The “non-financial” indicators of conduct and culture: leading indicators. What else would you consider?
To discuss this course or your learning needs
Your CII Relationship Manager would be delighted to explore your learning needs and can draw on the expertise within the CII Learning Solutions team to support you further.
Please speak with your Relationship manager in the first instance or contact business.enquiries@cii.co.uk for more information.
For enquiries about this course, please email to: business.enquiries@cii.co.uk
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