Cycle-time metrics
All cycle-time metrics reflect an integer difference in dates.
For a benchmark, the values are calculated by the average-of-averages methodology described in "Overview of Compare."
| Metric | Description |
|---|---|
| Days from Loss to Claim Open (Claim Only) | The mean number of days between the date of loss to the date that the claim was
opened.
Long periods between loss reporting and claim opening might indicate that a catastrophe is severe enough to prevent the timely reporting of losses. |
| Days Claim Open to First Exposure Open (Claim Only) | The mean number of days between the date of loss to the date that the first exposure was opened.
Long periods between loss reporting and claim opening might indicate that a catastrophe is severe enough to prevent the timely reporting of losses. |
| Days Claim Open to Exposure Open (Exposure Only) | The mean number of days between the date the claim was opened to the date that the exposure was opened.
Consistently late-breaking exposures might indicate manual instead of automatic reserving, issues in FNOL processing, or both. |
| Days Exp. Or Claim Open to First Payment (If Payment) | The mean number of days between the date on which the exposure or claim was opened to the first payment that was made against that exposure or claim, depending on metric level. If the exposure or claim remains open without payment, it is ignored for this metric, as might introduce some bias, particularly for young data sets.
Standards within cycle time vary by line of business, but cycle time measures efficiencies that are important for customer service as well as financially. This metric might be a proxy for speed of initial response to the claimant. However, that conclusion depends on business practice; for example, whether customers are paid directly for repair cost as compared to in-network vendors being payed for repairs completed. |
| To Last Payment (If Closed w/ Pay) | The mean number of days between the date the exposure or claim was opened to the last payment that was made against that exposure or claim, depending on metric level. If the exposure or claim remains open, it is ignored for this calculation, as might introduce some bias, particularly for young data sets.
This metric might be a proxy for speed of full response to the claimant. However, that conclusion depends on business practice. |
| To Close (If Closed) | The mean number of days between the date that the exposure or claim was opened to the date of closure. The younger the data set, the more this number underestimates the true number.
The difference between the time to last payment and the closure might represent administrative inefficiency, time to recovery, or both. |
| Exposure (or Claim) Open < n Days | Percentage of the data set's exposures or claims that are fewer than n days old or were closed within n days of opening.
This set of cycle-cutoff metrics gives the user a sense of the cycle's shape and to what extent claims remain open for a long time. Further, the metrics might indicate the level of efficiency in customer service, administration, or both, and is relevant to reserve accuracy. |