What is Key Performance Indicator Policy | Insurance glossary by upcover

KPI policies document the performance metrics an organisation uses to assess progress towards strategic and operational goals. From an insurance perspective, KPI frameworks are particularly relevant to management liability and D&O insurance, where executive remuneration is often linked to performance outcomes. Misleading disclosure of KPI performance to investors or stakeholders can give rise to claims alleging misrepresentation or breach of directors' duties under the Corporations Act 2001 (Cth). In employment disputes, KPI policies may also be scrutinised in unfair dismissal or adverse action claims where termination was linked to performance management processes under the Fair Work Act 2009 (Cth).

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