Risk Insurance Expense Benchmarking

Risk Insurance Expense Benchmarking released in April 2016 is based on a survey of Operating Expenses in Underwriting, New Business Processing Claims and Cost of Sales split by Acquisition, Update and Maintenance


Participating companies in the survey included AMP (including AXA), AIA, BT, CommInsure, MLC, OnePath, TAL and Zurich – which account for over 90% of sales and policy processing in the Life Industry. Data is provided at Industry level, thereby keeping individual companies’ information confidential. Results are split by Lump Sum products and Income Protection combined and by Income Protection.

 

1. Operating expenses in Underwriting, New Business Processing and Claims

Underwriting

  • By Lump Sum and Income Protection Combined, By Income Protection 
  • Average number of Underwriters
  • Range of Underwriting Staff
  • Number of cases per month
  • Average Cases per Underwriter p.m.
  • Average Cost per case per month

New Business Processing

  • By Lump Sum and Income Protection Combined
  • Average number of New Business Staff
  • Range of New Business Staff
  • Number of cases per month
  • Average Cases per New Business Staff p.m.
  • Average Cost per case per month

Claims

  • By Lump Sum and Income Protection Combined, By Income Protection 
  • Average number of Claims Staff
  • Range of Claims Staff
  • Number of cases per month
  • Average Cases per Claims Staff p.m.
  • Average Cost per case per month

 

2. Cost of Sales split by Acquisition, Update and Maintenance

Risk Insurance Sales split by Individual Risk Business and Group Business into three categories:

  • True Sales (annualised premiums, excluding single premiums)
  • Increases on existing business through age and CPI adjustments
  • Renewals (all other relevant premiums)

Results shown by:

  • Acquisition Costs (1st Year)  
  • Update Costs (Renewal)
  • Maintenance (Renewal)
  • Cost to Premium Ratio

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