8 Insurance Agency KPI Metrics to Track and How to Calculate

The insurance industry is going through tough times, but that doesn’t mean you can’t track your KPIs. In fact, it is more important than ever to do so. If you want to know how well your agency is doing, here are the best metrics you should track:

Monitoring of insurance agency KPIs

Tracking KPIs in an insurance agency is a great way to measure the success of your agency. In this article, we’ll go over KPI metrics and how they can help you track your business performance.

KPIs are key performance indicators that help you understand how well your agency is performing on specific key business processes. They can also be used as a way to measure the overall success of your business by tracking performance in multiple areas of operation at once.

What are the best steps to follow in an insurance agency?

One of the most important metrics to track in an insurance agency is the number of insurance companies represented. This gives you an idea of how competitive your agency is, how many products you can offer clients, and how much market share you have overall.

Companies like to see agencies with more or more carrier relationships, as it shows they have access to all business areas and can sell any product within those verticals (health, life , car). If an agency only represents one company for each vertical, that’s also not ideal; This indicates limited choices for customers and will likely cause revenue to decline over time.

Another key metric is new customer count – this tells us how many new customers we bring in on average each month/year so we know where our marketing efforts are working best so far as well as where we need for improvement (i.e. expanding into different industries). A good rule of thumb would be around 2% per month if possible; Anything less than that could indicate issues with marketing quality or messaging effectiveness, etc.

1. Number of insurance companies

The number of insurance companies represented by an agency is a good metric to track – and it’s one you can easily calculate using the following formula:

Insurance companies = Number of agencies + number of brokers

For example, if there are 10 agencies in your area and 10 brokers, you would have 20 agencies in total. If each agency represents 5 insurance companies, then 20 x 5 = 100 carriers. But what if your region has 15 branches? In this case you would have 15 x 5 = 75 carriers. The average across all regions should be around 70-80 or so depending on the size and diversity of each region.

2. NEW INSURANCE CUSTOMERS

New customer count is a great way to measure your business growth. It lets you compare the number of new customers in one period to the number of new customers in another period, which can help you determine whether your business is growing or shrinking.

3. Customer retention rate

This is the number of customers who renew their policies divided by the total number of customers. It is important to monitor this metric because it shows how loyal your customers are; If you have a low customer retention rate, it could indicate that you’re not doing enough to keep customers from leaving. You should also pay attention to how this metric fluctuates over time – if it goes up or down at any time, there could be something that needs your attention.

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4. Number of policies per customer

This is a useful way to track how many policies you sell to a single customer. This will give you an idea of what types of clients buy more than one policy and whether this is a good strategy for your agency.

Calculate:

• Divide the number of policies sold by each client by the number of years your agency has been in, then multiply by 100%. The result is your number of policies per customer metric. If someone has been with you for two years and has purchased three policies during that time, their number of policies per customer would be 150%. This may help explain why some customers are so valuable to agencies – they may have purchased multiple policies over time or purchased more expensive ones than others.
• Calculate it monthly (or quarterly if possible) so that it doesn’t take too long before new data becomes available (and therefore there isn’t too much fluctuation). This metric will vary depending on the type of agency you run and who your best customers are because there is no average amount they should buy each year; Some may buy one every six months while others might get two in one day!

5. Sales by Seller

The first KPI to track is Sales by Seller.

1) Calculate the total number of units sold by each person in the agency.

2) List each agent’s name and the total amount sold under their name in a spreadsheet or document (if you’re just starting your agency, now would be a good time to start tracking this information).

3) Summarize all sales from all agents together for an overall agency total.

Compare this number with previous months/years to track progress over time as well as with other agencies in your region/state/country that provide similar products and services to yours (and feel free to contact the questions about how they might be doing things differently from you).

6. Cross-selling by seller

Cross-selling is when you recommend a product or service to someone who already works with you.

There are several benefits to tracking cross-selling:

• It shows that your agency offers more than traditional products and services
• It helps to improve customer loyalty by showing a high level of engagement between sellers and customers
• It increases revenue by adding new lines to existing accounts

7. Lead Conversion Rate

Lead conversion rate is the percentage of leads that converted into sales. In an insurance agency, the conversion rate is the number of new customers who buy a product or service divided by the total number of leads. Conversion rate is an important metric to track in an insurance agency because it helps you understand the effectiveness of your marketing.

If your business has multiple products and services, you can measure each individually as well as on a combined basis. You should also keep track of how long it takes newly acquired clients to buy something once they become interested in your business or agency through marketing efforts such as digital advertisements, paid search and social media posts.

8. Renewal by the seller

Renewal by the seller. This is the percentage of renewals sold by each individual seller. This metric can help you understand how well your employees are performing and whether they are successful in closing renewals, so it’s important to track.

Renewal rate by carrier. The renewal rate by carrier shows how many policies are renewed with a specific insurance company compared to policies not renewed with that same carrier. If your renewal rate is not meeting expectations in this category, it may be because new customers are not choosing this particular insurance provider as often as they used to or they are not being marketed well enough. on social media platforms like Facebook or Twitter where consumers are increasingly getting their information about products and services today due to increased competition between companies trying different marketing strategies before purchasing a product/service given from one company to another; This could mean fewer sales overall for businesses like yours, which would negatively impact its overall financial performance down the road compared to other businesses that might have done better than yours because their customers haven’t changed providers yet, but still buy watches etc. Mail-order catalogs instead of going online first these days (meaning their ad spend stays constant while everyone else goes up).

Conclusion

In an insurance agency, you can use many KPIs to measure performance. Those listed above are just a few examples of what is available.

In order to successfully track your KPIs and make them meaningful to your business, you will need access to the right tools like Google Analytics or Microsoft Excel which will allow you to track data over time as well as create reports based on it. metrics that display in an easy-to-understand way, everyone involved understands what they mean.