1. What Is Turnaround Time (TAT)?

Turnaround Time (TAT) in life insurance refers to the average time taken to process insurance policies from application submission to final decision. It's a key performance indicator for insurance companies measuring operational efficiency.

2. How Does The Calculator Work?

The calculator uses the TAT formula:

Where:

• \( \text{Total Time} \) — Sum of processing time for all policies (days)
• \( \text{Policies} \) — Number of policies processed

Explanation: This calculation provides the average processing time per policy, helping insurance companies monitor and improve their operational efficiency.

3. Importance Of TAT Calculation

Details: Monitoring TAT helps insurance companies identify bottlenecks, improve customer satisfaction, optimize resource allocation, and maintain competitive advantage in the market.

4. Using The Calculator

Tips: Enter total processing time in days and the number of policies processed. Ensure values are valid (total time ≥ 0, policies > 0).

5. Frequently Asked Questions (FAQ)

Q1: What is a good TAT for life insurance processing?
A: Industry standards vary, but typically 5-15 business days is considered efficient for most life insurance applications.

Q2: How can insurance companies reduce their TAT?
A: Strategies include process automation, staff training, digital document management, and streamlining underwriting procedures.

Q3: Does TAT affect customer satisfaction?
A: Yes, longer processing times often lead to customer frustration and higher application abandonment rates.

Q4: Should TAT be calculated differently for different policy types?
A: Yes, complex policies (like whole life with medical underwriting) typically have longer processing times than simpler term policies.

Q5: How often should TAT be monitored?
A: Most companies track TAT weekly or monthly to identify trends and address processing delays promptly.