In working with our insurance carriers of all tiers, many clients ask me which key performance indicators (KPIs) are the most measured in the P&C industry. While there are several that are widely used and accepted, frankly, they are outdated.  I can confidently say that both the measures and emphasis are changing for the better, though.

For many years, the industry focused on paint and parts (specifically the ongoing repair vs. replace debate). Even though the parts metric has been the industry standard for many years, it is flawed. The parts metric measures the "percentage of parts dollars," which on the surface seems logical, but any time you measure a percentage of something, it can lead to unexpected results.

Take alternate parts for instance, the prime example of why this metric is ineffective. Let's say you have a $2,000 estimate in which $1,000 is spent on parts. Of that $1,000, $200 is for a used door.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.