Key performance indicators (KPIs) are metrics that help you understand your personal or organizational performance. As an insurance agent, you may be wondering what KPIs you need to keep an eye on to make sure your business is growing. The trouble is, there are thousands of KPIs that an insurance agency can potentially monitor, so it can be hard to decipher which are actually most important. (Tweet this!) We’ve identified 10 crucial core KPI's that insurance agents should be tracking. We've also put together a list of 50+ additional KPI's that are important to track, but are generally more advanced KPI's that agents can integrate into their analytic processes as needed. These "advanced" KPI's are grouped together by how often you should be looking at them—daily, weekly, or monthly. We’ve also included a list of "expert" KPI's – these are the highly advanced insurance KPIs and metrics that your agency should consider following if you’re focused on agency growth.
10 Core "Must Track" Insurance KPI's
Core KPIs To Watch
You should be looking at these 10 KPIs for insurance agencies at the very least.
- Monthly Bind Rate. This one almost goes without saying, but looking at the bind rate (the percentage of quotes given to leads that are converting into bound policies) is an absolute must. This can further be broken down to see each producer’s individual bind rate per month.
- Quote Rate (Daily, Weekly and Monthly). Out of the total number of leads you’ve contacted, quote rate tells you how many you have been able to quote. Again, this should be broken down by producer (at minimum) to assess individual performance.
- Contact Rate. Of the total number of leads you've reached out to, how many you’re able to make contact with. As with quote rate, you should be breaking this down by producer.
- Cost Per Bind (cost per acquisition). This is another incredibly important KPI that is often overlooked. Cost per bind tells you how much it costs your agency to bind a policy or acquire a customer per month.
- Cost Per Quote. Cost per quote is another crucial KPI that is often ignored by agents. This KPI lets you monitor how much it costs you to put your quote in front of a consumer. If you are seeing a low cost per quote, but a high cost per bind, it lets you know something is causing prospects to drop off after they receive a quote (but before they bind). Looking at this on a monthly basis is most important, but it can also be broken down weekly (or even daily).
- Cost Per Premium by Lead Source. This KPI is crucial to an agent's understanding of which marketing source is producing the lowest cost per acquisition. This metric breaks down the monthly cost to drive in $X in premium, broken down by the lead sources you were buying from.
- Cost Per Bind by Lead Vertical. How much it costs your agency to bind an auto policy versus a home policy. This KPI helps you identify which verticals (auto, home, life) your team sells into best and should be tracked on a monthly basis (although it can also be useful to track weekly).
- Cost Per Item by Lead Vertical. Similar to the previous KPI, this helps you understand which vertical (auto, home, life) allows the most items to be written and should be tracked on a monthly basis.
- Cost Per Bind by Producer. Each producer’s individual bind rate and how much it costs to bind a new policy (by producer). This should be tracked monthly, but can also be useful to track weekly.
- Producers Talk Time and Dials. These are crucial for understanding your producer's activity level and gives you insight into how well they are doing with prospecting and having conversations with prospects. A producer with low talk time and dials (compared to other producers) is surely a red flag.
50+ Insurance KPI Examples
Daily KPIs To Watch
You should be looking at these KPIs for insurance agencies daily at the very least.
- Items written per marketing source. For example, the number of items within a policy you’ve written from Lead Vendors vs. from SEM/SEO sources vs. from Facebook/Social Media sources vs. Direct Mail.
- Premium written per marketing source. For example, the $ premium amount written from Lead Vendors vs. from SEM/SEO vs. from Facebook/Social Media vs. from Direct Mail.
- Contact rate. Of the total number of leads, how many you’re able to make contact with. Monitoring this metric helps you diagnose whether your lead lists are helping you, and might give you some understanding of whether you need to consider other lead generation options to stay competitive with producers at comparable agencies.
- Your contact percentage shows you how many of the leads you’ve paid for that turned into conversations.
- Comparing your contact percentage can also help you diagnose how successful you are vs. similar agents.
- Most importantly, using contact percentage as a KPI is a good way to assess your agency’s strengths and weaknesses in terms of contacting prospects—specifically, you can use contact percentage to see how well your producers are doing in conversation, what they need to focus on to improve, who they lose prospects to, and how they direct conversations.
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Weekly KPIs To Watch
You should be looking at these KPIs for insurance companies weekly at the very least.
- Cost per bind (also known as cost per acquisition). How much it costs your agency to bind a policy or acquire a customer. Of these insurance KPI examples, this may be the one you’re most familiar with.
- Cost per quote. Cost for your agency to provide a quote on a weekly basis.
- Cost per contact. How much it costs your agency to make one contact with a prospect on a weekly basis.
- Producers dials. The number of dials a producer calls out in a week.
- Producers talk time. The average length of time a producer is on the phone with prospects in a week.
- Activities per producer. The number of calls, emails, voicemails, (any defined touches) that a producer puts on an individual lead. You can compare this against other producers to better evaluate their strengths and weaknesses and areas for improvement/development.
- Bind rate by lead vendor. Your bind rate is the rate that you close business; at the end of the day it is what determines your closing rate. While all of these KPIs are a good idea to monitor, bind rate is the metric you absolutely have to know and put to work.
- Quote rate by lead vendor. Out of the total number of leads you’ve contacted from a particular vendor, how many have you been able to give a quote to.
- Premium written by lead vendor. The dollar amount that the consumers policy and items are worth per vendor you work with. Who is producing the most valuable leads?
- Items written per lead vendor. The number of items items written on leads received from specific lead vendors.
- Items written per marketing source. The number of items written based on leads from specific marketing sources. For example, lead vendors vs. SEM/SEO vs. Facebook/social media vs. direct mail.
- Premium written per marketing source. The total premium amount written based on leads from specific marketing sources. For example, lead vendors vs. SEM/SEO vs. Facebook/social media vs. direct mail.
Monthly KPIs To Watch
You should be looking at these insurance KPI and metrics at least monthly.
- Premium written by lead type. (Monthly)
- Premium written by lead vendor. (Monthly)
- Premium written per marketing source. (Monthly)
- Items written per marketing source. (Monthly)
- Items written per lead type. The number of policy items written broken down by the types of leads received each month.
- Items written per lead vendor. The number of policy items written on leads from each specific lead vendor per month.
- Cost per premium by lead type. The monthly cost of what you spent to drive that premium broken down by the lead types you were buying.
- Cost per premium by lead source. The monthly cost of what you spent to drive that premium broken down by the lead sources you were buying from.
- Cost per Items per lead type. The monthly cost of what you spent to drive those items broken down by the lead types you were buying.
- Cost per Items per lead vendor. The monthly cost of what you spent to drive those items organized by each lead vendor you are buying from.
- Cost per bind (cost per acquisition). How much it costs your agency to bind a policy or acquire a customer per month.
- Cost per quote. Cost for your agency to provide a quote on a monthly basis.
- Cost per contact. How much it costs your agency to make one contact with a prospect on a monthly basis.
- Overall bind rate by lead type. The amount of business that you close by lead type per month.
- Overall quote rate by lead type. (Monthly)
- Overall contact rate by lead type. (Monthly)
- Overall bind rate by lead vendor. (Monthly)
- Overall quote rate by lead vendor. (Monthly)
- Overall contact rate by lead vendor. (Monthly)
- Overall bind rate by marketing source. (Monthly)
- Overall quote rate by marketing source. (Monthly)
- Overall contact rate by marketing source. (Monthly)
- Bind rate per producer. Each producer’s individual bind rate per month.
- Quote rate per producer. Each producer’s individual quote rate per month.
- Contact rate per producer. Each producer’s contact rate per month.
Advanced KPIs to Follow
You should be looking at these KPIs for insurance companies weekly at the very least.
- Cost per item per marketing source. Cost per item per source (i.e. how much does it cost to get an item from internet leads versus direct mail as a whole?).
- Activities per bind. How many activities produce a bind (look at this by lead vendor, by marketing source).
- Activities per quote. How many activities produce a quote.
- Activities per contact. How many activities produce a contact.
- Dials per bind. How many dials are needed to produce a bind.
- Dials per quote. How many dials are needed to produce a quote (weekly or monthly).
- Dials per contact. How many dials are needed to produce a contact (weekly or monthly).
- Cost per dial per producer. How much does 1 dial cost you for each producer working? When you can understand this, you will have a better understanding of their efficiencies and where/what you can improve on.
Retention & Persistency KPIs:
In addition to the above insurance KPIs and metrics, which focus on securing new business and closing customers, insurance agents and producers should pay attention to indicators that reveal how well the agency is actually retaining existing business. Here is a list of important KPIs for retention and persistency:
- Are agents taking time to set expectations on every sales call?
- Is the case manager/customer success manager following the guidelines for setting expectations?
- Are agents tracking their cancel rates?
- Are agents attempting to sell multiple policies on every call? Bundling policies makes it less likely that an existing policyholder will shop around for new coverage—consumers tend to stay with carriers longer if they have bundled home and auto insurance, for example.
- Is there a dedicated staff member to handle cancellation requests when existing customers wish to cancel? However, keep in mind that pending cancellation policies are sometimes due to expired credit card numbers, missed payments, changes of address, and other clerical errors, as opposed to the customer actually wanting to cancel a policy. By having a member of your team dedicated to these types of potential issues, you can make sure you don’t lose a customer who didn’t intend to cancel.
- Are agents attempting to understand why existing customers are cancelling? Ensure you have a process in place to track why existing customers cancel their policies and then address their concerns.
- Is there a tracking system in place to identify the agents most successful at saving cancelled business? In addition to tracking this KPI, these agents should lead training on how to achieve that success—their KPIs indicate they are good at saving cancelled business, so let the entire team benefit from their skills.
- Are agents keeping in touch with an existing book of business? Persistency is important. Sending an email or physical mail, texting (when appropriate), and using social media to keep in touch are all ways to make sure your agency stays in front of your existing customer base.
- Are your agents, case managers, success managers or customer service members asking clients for referrals on every call? Sourcing new business should be a priority for each department!
Agents have a lot of insurance KPIs & metrics to track.
As an agent, your ultimate goal is to deliver the product or service that is most important to each of your customers. By monitoring the above KPIs, you’ll gain more insight into which of your leads might convert to a sale (and which will not). Although you have a lot of KPIs to track, you don’t have to figure it all out by yourself.
How To Track Your KPIs
Most established agencies have a reporting system, like their portal or CRM, to help them track KPIs. However, even smaller agencies that don’t have access to more sophisticated tools can (and should!) be tracking the indicators we’ve listed.
If you aren’t ready to invest in a CRM, or you don’t have your own system to track KPIs or provide live notifications, one of the quickest and easiest ways to track KPIs is to contact the carrier for whom you work. You can request reports directly from the carrier, so you at least have a starting point for tracking KPIs.
However, while this type of reporting will work temporarily, I do suggest investing in a tool like a CRM to help you really use the data you’re gathering as soon as possible. A CRM can be integrated into many carriers, providing you with live reporting. You’ll also be able to track customer life stages, customize the insurance KPI lists most important to your agency’s growth, and identify the types of clients and scenarios that are most likely to result in a cancellation based on the data you’ve collected.
Do you have access to the high-quality leads your agency requires?
At EverQuote, our mission is to help you identify your bound policy goals based on your carrier and products your agency offers and then provide high-quality leads that help you reach those goals and make sales.
When you purchase your leads through EverQuote, you can rest assured that the quality leads we provide will meet your specific criteria. This expertise increases your chances of selling to each lead, thus boosting your success rate across all categories of these KPIs. As part of our Accelerated Growth Program (AGP), we’ll help you keep an eye on these criteria and make changes when necessary, so you can grow your business. To learn more about how EverQuote leads can grow your agency, schedule a no-obligation consultation.