Recourse indicators

Recourse metrics are part of the assessment of an insurance company's claims management .

Recourse is an instrument for reducing claims expenditure . The proceeds of such recourse reduce the expenses from claims settlement or from the provision of services by the insurer and thus improve their damage-cost ratio . The insurer can measure the success of the implementation of recourse with the following indicators:

• Gross recourse rate : This rate is measured in percent and describes the ratio of the proceeds from recourse against the party causing the damage to the premiums received from the insurance contracts.

• Net recourse rate : This rate is measured in percent and describes the ratio of the proceeds from recourse against the party causing the damage to the expenses from claims settlement or from the provision of services to the insurance contracts.

• Gross recourse frequency: This rate is measured as a percentage and describes the ratio of the number of claims with proceeds from recourse against the causer to the number of insurance contracts with policyholders.

• Net recourse frequency: This rate is measured in percent and describes the ratio of the number of claims with proceeds from recourse against the causer to the number of claims with expenses from claims settlement or from the provision of services to the insurance contracts with the policyholders.