Total claims paid as a percentage of premiums earned. The key profitability indicator for insurance businesses.
Claims Ratio is defined as: Total claims paid as a percentage of premiums earned. The key profitability indicator for insurance businesses.
Claims Ratio is typically measured using data from a Claims Management System. This system of record provides the transactional and operational data required to calculate and monitor this metric accurately and in real time.
Claims Ratio is a key performance indicator used across the following sectors:
Firehawk Analytics connects directly to your Claims Management System and delivers a live Claims Ratio dashboard. Configuration is completed within 48 hours — no data analyst required on your team.
Operating expenses as a percentage of operating income. The benchmark efficiency metric for banks and financial institutions.
Difference between interest income and interest paid, relative to earning assets. The fundamental profitability metric for lending institutions.
Percentage of clients who maintain their accounts or policies year-over-year. Retention is significantly cheaper than acquisition in financial services.
In 48 hours, you'll have a live Claims Ratio dashboard connected to your Claims Management System.