Claims managers face pressure to reduce costs, improve turnaround times, and meet strict compliance requirements. But without the right claim metrics in place, it’s almost impossible to measure performance or identify where improvements are needed.

Here are five essential claims management metrics every organisation should be tracking to stay compliant, efficient, and cost-effective.

1. Average Claims Cycle Time

Why it matters: Long cycle times increase costs, create bottlenecks, and frustrate claimants.

What to track:

• Days from claim submission to closure
• Variations by claim type (property, public liability, employer liability etc.)
• Delays caused by missing documents or approvals

Pro tip: Speed up your claims process with JCAD’s claims handling software. Features such as online claims forms, automated workflows, and EDIs help reduce delays and keep processes moving smoothly.

2. Cost per Claim

Why it matters: Monitoring direct and indirect claim costs helps identify overspending and spot trends such as recurring high-value claims.

What to track:

• Average cost per claim
• Total settlement vs. reserves
• Cost drivers behind recurring incidents

Pro tip: Reporting on cost per claim can provide insightful information regarding claim trends and allow for more aligned risk mitigation.

3. Claims Frequency & Incident Trends

Why it matters: A rise in claims may highlight deeper issues such as unsafe environments or inadequate training.

What to track:

• Claims volume over time
• Trends by location, department, or incident type
• Repeat incidents and hotspots

Pro tip: Utilising our API, you can export data from LACHS into your own Business Intelligence tools to ensure tailored, accurate reporting and real-time reporting.

4. Claims Settlement Ratio

Why it matters: The settlement ratio shows how many claims are resolved successfully compared to those rejected, withdrawn, or left pending. A low ratio may indicate documentation issues or policy gaps.

What to track:

• Percentage of claims settled
• Common reasons for disputes or rejections
• Trends in settlement performance & repudiation rates

Pro tip: With JCAD’s system, every claim has a clear, auditable trail — improving defensibility and transparency.

5. Compliance & Regulatory Breaches

Why it matters: Compliance failures (e.g., GDPR breaches, missed reporting deadlines) can lead to penalties and reputational harm.

What to track:

• Regulatory reporting deadlines met vs. missed
• Documentation completion rates
• Breaches of internal policies

Pro tip: With JCAD’s claims handling system, automated reminders, the ability to easily assign tasks to claims handlers, and easy viewing of overdue tasks ensure deadlines are never missed.

Conclusion

By tracking these five core metrics: cycle time, cost per claim, frequency, settlement ratio, and compliance, claims managers can transform their operations from reactive to proactive.

With JCAD’s claims management software, organisations gain real-time visibility into all these KPIs, ensuring faster decisions, lower costs, and stronger compliance.

✅ Next Step: Book a demo with JCAD today and see how you can gain control of your claims handling process.