Additional financial metrics

For a benchmark, the values in the following table are calculated by the average-of-averages methodology described in "Overview of Compare."

Metric Description
Count of Days w/ Indemnity Changes Depending on metric level, the mean number of days per exposure or claim with a net positive payment. Multiple payment transactions on a single day are counted as a single instance.

Lower number of payments can be either a proxy for greater efficiency or an indication of slow processing on pending claims.
Expenses Incurred Depending on metric level, the following detail about exposures or claims:
  • If open, the mean expenses paid.
  • If closed, reserves plus non-eroding expense payments.

Comparing against benchmarks enables you to discern differences between your company and others. The differences might be attributable to differences in operational philosophy, in vendors, or in the mix of either business or claims.

Not all insurance companies reserve expenses.
Expenses Paid as % of Expenses Incurred Expenses paid divided by expenses incurred, multiplied by 100.

This metric provides insight into pending expenses and is especially meaningful for claims or exposures with high levels of expenses that can vary widely over time, such as litigated claims.
Expenses Paid as % of Indemnity Incurred Expenses paid divided by idemnity incurred, multiplied by 100; a measure of efficiency.
Recoveries Reserved Depending on metric level, the following detail about exposures or claims:
  • If open, the mean recovery amounts reserved.
  • If closed, the mean recoveries received.

You can monitor the recoveries that are expected to be received, in addition to those already received, and compare your recovery performance to a benchmark.
Recoveries Received as % of Recoveries Reserved Recoveries received divided by recoveries reserved, multiplied by 100.

This metric provides insight into pending recoveries.
Recoveries Received as % of Indemnity Incurred Net recovery payments of all types divided by the indemnity incurred, multiplied by 100.

This metric provides insight into total recovery, not just subrogation and salvage.
Net Total Incurred Sum of indemnity incurred and expenses incurred, minus the recoveries reserved.

This metric gives a net view of the claim or exposure, depending on the metric level.
Net Total Paid Sum of indemnity paid and expenses paid, minus the recoveries received.

This metric gives a net view of the claim or exposure, depending on the metric level.
Net Total Paid as % of Net Total Incurred The net total paid divided by the net total incurred, multiplied by 100.

The metric suggests how much is left outstanding on the data set.