By Etienne Castonguay, Partner & Co-founder, InEdge
Toronto, ON (Sept. 10, 2015) – In their ongoing efforts to set and follow growth objectives with the ultimate aim of improving revenues, underwriting managers and executives desire more visibility into their teams and greater clarity on underwriter performance. But when it comes to getting the answers they need, they can sometimes feel they are still being left in the dark. Safe to say, if they can get answers to the following five questions, they will be on the right track to furthering their understanding of underwriter sales performance.
- What is the sum of direct written premiums during a specific period of time?
As the main indicator of revenue performance, keeping tabs on direct written premium should be at the top of the list for underwriting managers. Whether for a particular product line or in comparison to the previous year’s results, this is the most sought-after information.
- What is the sum of written policy exposures in a given period?
Underwriting managers should also have access to written policy exposures information along with related indicators such as the average premium that could show an opposing trend. Depending on the context, this could help refine the interpretation of the direct written premium indicator.
- What is the sum of new business written policy exposures in a given period and how does it compare to the previous period?
This information can provide an indicator of sought-after business and points in the direction of the capacity to acquire new clients. It can prove particularly important to underwriting managers during marketing campaigns.
- How many policies are in-force at the end of a given period?
This information is important for underwriting managers wishing to have an easily comparable measure of growth.
- What is the loss ratio for a given period?
Underwriting managers should have easy access to this information since it is one of a P&C insurer’s main measures of profitability.
With the answer to these five basic sales-related questions, underwriting managers and executives have a set of orthogonal metrics for evaluating, guiding, and improving revenue performance. With an Analytics solution fine-tuned to the measurement of P&C underwriting performance, this information can easily be obtained, and further rounded out with metrics on other subjects such as claims, distribution channel, ,or business transaction types. In conclusion, the most suitable underwriting operations performance solution is one that provides information that allows underwriting managers to address their most important concerns regarding written premium performance.
For details, consult our white paper, Unlocking Underwriting Performance with Analytics.
About the Author
Etienne Castonguay is Partner and Co-founder at InEdge, an insurance Analytics solution provider, where he is responsible for business development and making sure strategies are aligned with the Insurance Industry needs for pre-built Analytics. He has over 25 years of sales and management experience in the distribution of information technology solutions. He previously held various positions with Sybase, Sun Microsystems and Hewlett Packard.
InEdge is a leader in Insurance Analytics solutions. Experienced at quickly leveraging data, InEdge seamlessly and powerfully creates business advantage for its clients. Since its creation in 1994, InEdge has designed and implemented some of the most sophisticated analytical applications available today. Our clients add up to an impressive roster of Property & Casualty and Life Insurance companies. Our Analytics solutions improve and make easier decision-making at all levels for our clients. Visit InEdge.com.