Top 5 KPIs You Should Track as an Insurance Agent

As an independent insurance agent, growing your business is one of the most important things you can do. After all, your business is your livelihood. 

Without growth, business can become stagnant, which can lead to constantly having to fight an uphill battle. 

To grow your business the right way, you need to set key performance indicators, or KPIs, and track how you are progressing toward reaching them. Doing so will allow you to get an in-depth look at data for all the vital aspects of your business so you can ensure you’re moving in the right direction. 

Not sure where to start, though? Read the top 5 KPIs that you should track as an insurance agent below.

New Policies

To grow your insurance business, you’re going to need to sell new policies. That’s why it’s essential to track how many new policies you’re closing on a rotating basis. 

You can set a timeframe and goals for how many new policies you’d like to close every week, every month, every quarter, etc. It’s a good idea to break these goals down into different time periods so that you can constantly assess whether you’re reaching or missing the KPIs, which could indicate to you that something might need to change. 

Also, remember that a new policy can be sold to a completely new client or to a current client — i.e., someone who had an auto insurance policy with you but just purchased a new homeowners insurance policy. 

What you’ll come to learn, though, is that your new policies KPI will be determined much more by some of the other more granular KPIs below.

Contact Rate

A great granular place to start is a contact rate. This measures how many people you were able to make contact with as a comparison to how many people you reached out to. 

This ratio is important because it can help guide you to understand how many leads you’re going to need to generate, on average, in order to get in touch with people and progress them down the sales funnel.

Quote Rate

As any insurance agent knows, one of the last steps before underwriting a new insurance policy is providing a prospective customer with a quote. This is another step further down the sales funnel, though, and one that you should measure in relation to the steps before it. 

In other words, you are measuring how many quotes you were able to give to prospective customers compared to how many leads you were able to contact. This ratio will help to set goals for how many prospective customers you’ll need to reach in order to provide a sufficient number of quotes. 

Bind Rate

The bind rate is great for insurance agents to measure. This allows you to see how many insurance quotes actually covert into closed insurance policies.  

The bind rate is going to tell you a few things. First, it’ll tell you how well you are at closing deals. If you have other agents who work under you, this rate can also help you compare them to each other. 

Second, the bind rate can also help you set goals for how many leads you need to add to your funnel. 

Let’s say your goal is to close 10 new policies per week, and it takes you five quotes to close one new policy on average. This means you’ll need to be giving 50 quotes per week in order to close those 10 new policies. 

Having this information will help you figure out how you can add new leads to your sales funnel, how many you need to progress down the funnel and so on.

Sales Growth

The word “growth” is too generic. If you want to actually grow your business, you need to set goals for how much you want it to grow. 

Sales growth is the KPI for that. This metric will help you measure how much your sales have actually increased — hopefully — over a defined period of time. While you may look at this from a financial standpoint — i.e., the total amount of new money you brought in — that’s not the best approach. 

Instead, you want to break it down into two categories. First, measure how many new policies you were able to bind. Then, measure how many renewals you were able to lock up. 

By focusing on the number of policies, regardless of how much income they generated for you, will ensure that your business is growing. By measuring new policies and renewals separately, you’ll be able to identify if you’re excelling at one and falling behind at another, for example. 

Keep in mind that new policies are great, but renewals can serve as the backbone of your company — bringing in consistent revenue for you on an annual or bi-annual basis. The more new policies you underwrite, the more opportunities you have to renew, which can all lead to huge growth potential.

Discover the Good Life  

At Good Life Insurance Associates, our experienced insurance sales associates are here to provide support and training for both new and experienced agents. To learn more about us, remember to explore our business support services. Or, to speak with a member of our team about your journey to becoming an independent agent, contact us today!  

Discover the Good Life