Problemi Ekonomiki (Sep 2019)
Key Performance Indicators of Insurance Market for Consumers of Insurance Services
Abstract
The use of key performance indicators (KPIs) is the driving force for enhancing business efficiency. However, to our knowledge, this approach has not yet been applied to a comprehensive analysis of the insurance market. The problem of assessing efficiency of the insurance market by its main participants is relevant. It is important to find out how KPIs can be used in insurance business. The presented article is the beginning of a series of works dealing with the development of KPIs for participants in the Ukrainian insurance market. The aim of the work is to elaborate a system of KPIs of Ukraine’s insurance market for consumers of insurance services based on macroeconomic and microeconomic indicators, which would allow to obtain a comprehensive assessment of the results achieved from the standpoint of various participants in the insurance market.The number of KPIs is optimally limited in order to eliminate secondary indicators that almost do not influence assessment effectiveness or ensure accessibility of data on insurance companies and those of the state authorized body required for calculating KPIs. In the work, the KPIs of the Ukrainian insurance market, which can be used by potential customers of insurance companies, are first developed and classified. The relevant KPIs are: price for the service, share of administrative expenses, level of insurance reimbursement, completeness of insurance reimbursement, percentage of the loading in the insurance tariff, service accessibility, timeliness of payments. For consumers of services, insurance efficiency is achieved by minimizing the price for the service; ensuring, high quality and timeliness of the service, and completeness of insurance reimbursement. The new approach provides the possibility for using the developed KPIs to assess the entire insurance market as well as an individual insurance company or insurance service.
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