The insurance industry is one of the most complex and ever-changing industries in the world. As an insurance agency owner, it’s important to stay on top of the latest trends and understand which metrics are most important to the success of your business.
In this article, we’ll take a look at six of the most important metrics for insurance agency performance. There are also many informative resources online that tackle insurance agency performance metrics.
1. Sales Volume
The sales volume measures the total dollar amount of new business sales generated by your agency in a given period of time. Monitoring sales volume will offer a good indication of your agency’s overall growth and success in winning new accounts.
2. Production Ratio
The production ratio measures the number of policies sold per producer in a given period of time. This metric helps you gauge each producer’s effectiveness at selling insurance products.
3. New Business Ratio
The new business ratio measures the number of new policies sold as a percentage of total policies sold. This metric is a good way to track your agency’s success in acquiring new customers and growing your business.
4. Renewal Rate
The renewal rate measures the number of policy renewals as a percentage of total policies in force. This metric shows you how well your agency is retaining its existing customers.
5. Persistency Rate
The persistency rate measures the number of policies that remain active after 12 months as a percentage of total policies sold. This metric shows you how long customers are sticking with your agency’s products and services.
6. Customer Satisfaction Score
The customer satisfaction score measures the percentage of customers who are satisfied with their experience with your agency. This metric shows you how well your agency is delivering on its promises to customers. High scores on this metric indicate that your agency is meeting or exceeding customer expectations, while low scores indicate that there is room for improvement.
Quality data is essential to making informed decisions about your insurance agency’s future. By tracking the right metrics, you can make strategic decisions that will help your business grow and prosper. These six essential metrics for insurance agency performance will give you the information you need to make sound decisions for your business.