Average Revenue per Client
Total Premium
Another easy one to track. This needs to be done for all personal lines in the agency, not just by carrier.
Total Policies
Total all your policies by carrier into one agency number.
Total Number of Clients
This equates to total households.
Average Number of Policies per Client
Divide total policies into the total number of clients to get this number. This is one of the most helpful statistics for indicating how well your team is cross selling. A rough average of number of policies per client to use is 1.6. If you're averaging 1.4, you know that one of the first things you should do is a big cross-sell effort throughout your book. If your average policies per client are 1.6 or less, you should focus your marketing efforts here first.
Average Premium Per Policy
To find this amount, divide total premium by total number of policies.
Average Revenue per Client
To determine the average revenue per client, multiply the average premium per policy by average policies per client.
For example, if your average premium per policy is $1,000, and your average policies per client is 1.6, then your average premium per client is $1,600.
Average premium per client
$1000 x 1.6 = $1600
Now multiply your average premium per client by your average commission.
For example, $1,600 average premium per client times your average commission of 13% would equate to average revenue per client like this: $1,600 x .13=$208 average revenue per client.
Average revenue per client
$1600 x 0.13 = $208