Key Performance Indicators for Insurance Agencies
Key Performance Indicators or simply known as KPIs are widely used by different organizations in evaluating performance; mostly in insurance agency. These are actually the quantifiable measurements that help in determining future, current and historic performance rapidly which is predicted based on the KPIs used as well as the selected platform.
For the purpose of this article, let us focus on insurance agency KPIs. This may include net losses, renewal growth, producer quotations, Schumacher Insurance Agency revenue, revenue by employee, average book of business by the produce and the number of new net clients as well. The KPIs must reflect the goals of the agency and it is important to choose key performance indicators that can quickly indicate strategic and tactical success of the sales efforts.
To give you a quick example, producer KPIs include renewal commission, new commission revenue, average book of business by producer, ratio of renewal commissions to net new commissions, close ratio or ratio of quotes to closes, total new quotes, revenues by lines of coverage, YTD revenue growth, closes by lead sources, revenue by employee etc.
These said KPIs all help in measuring the insurance agency and offer indicators of both past performance as well as future success. Every year, revenues are compared from the past performance to current performance while web meetings and proposals look forward, an indication of what the business may be like in the future. If for instance that your new prospect meeting has dropped by 20 percent for the last quarter from prior quarter, then you can be sure that you'll experience drop in your new business. If you experienced the same drop compared to the year before, then this gives you better indication that you're just on the right track of comparable yearly sales.
Key Performance Indicators are going to vary from one agency to the other but if they're valuable to your insurance agency, then you have to stay consistent and accurate. KPIs must integrate targets or goals in tracking and measuring performance. So to give you an example, insurance agency's goal is closing 50 percent of proposals and 25 percent of web meeting prospects. This goal is measured against the KPIs for this category in tracking and monitoring progress. Your Schumacher Insurance Agency commercial insurance nj may set a goal of maintaining 1 million dollars book of business for veteran producer while you have a different goal.
These goals must tie into the overall KPI monitoring, which offer insights to the status of your insurance agency, with indications of having strong performance in the future. You can also read more about the traits of a good insurance agency by visiting the post at http://kids.britannica.com/comptons/article-202734/insurance.