The study examines the impact of Key Performance Indicators (KPIs) on the financial performance of selected public sector health insurance companies in India, focusing on how operational and financial metrics influence profitability. The purpose is to analyze the relationship between KPIs such as combined ratio, market share, gross premium direct income, and solvency ratio with operating profit. The research methodology (RM) adopts a mixed-method approach, utilizing secondary data from 2018 to 2024. Correlation analysis is employed to evaluate the strength and direction of relationships between KPIs and financial performance, while Ordinary Least Squares (OLS) regression analysis is used to assess the impact of these indicators on operating profit. The findings reveal significant positive relationships between KPIs and financial performance, particularly emphasizing the role of efficient underwriting practices, as reflected in the combined ratio, in enhancing profitability. Additionally, higher gross premium direct income is associated with increased market share, providing a competitive advantage to larger insurers. The study concludes that effective management of KPIs is crucial for improving financial performance and sustaining competitiveness in the insurance sector. These insights highlight the importance of strategic decision-making and performance monitoring in achieving long-term growth.