Using Key Performance Indicators (KPIs) in Inclusive Insurance Supervision
Key Performance Indicators are a powerful tool for supervisors to regularly evaluate the development, soundness and appropriateness of the inclusive insurance sector. ICP 9 on Supervisory Review and Reporting sets out that risk-based supervision should use both offsite monitoring and onsite inspection, and supervisors should collect the necessary information to conduct effective supervision and evaluate the insurance market. Collecting financial and non-financial data, both quantitative and qualitative, enables supervisors to continuously monitor the condition, conduct and risk profiles of insurers, thereby being a critical resource for supporting risk-based supervision. This paper provides some insight into how some common Key Performance Indicators can inform the supervisory development and review of inclusive insurance.