Promptness of Claims Settlement (PI9897)

This metric is intended to capture how long on average (in days) it takes the organization to settle claims, measured from the date of the insured incident.

Organizations should calculate this metric using the average days’ duration between the date of an insured incident and the date that the affected stakeholder receives payment or claim denial.

Organizations should footnote a schedule outlining the number of claims settled within specified durations. In this regard, organizations are encouraged to report the number of claims settled within the timeline breakouts recommended by the Microinsurance Network: 7 days, 8–30 days, 31–90 days, and more than 90 days. Where applicable, organizations should note how duration ranges change to match regional norms.

It is not always possible to determine how long it takes for payment to reach the affected stakeholder (i.e., the date benefits were received). In these cases, organizations should estimate using the date on which the claim was paid, footnoting these assumptions.

For more detail on the Promptness of Claims Settlement and the recommended footnote schedule, as well as for guidance on interpretation, see the Microinsurance Network's Social Performance Indicators for Microinsurance, p. 19 (https://www.social-protection.org/gimi/ShowRessource.action?id=5270).