Insurance agent sales and marketing key performance indicators

By Alan Blume

StartUpSelling, Inc.

Key performance indicators — commonly referred to as KPIs — are quantifiable measurements that help producers rapidly understand performance from historical, current and future performance perspectives. KPIs are a performance metric which can and should be used to evaluate the success of a particular sales or marketing activity. Insurance agency KPIs can be used to track pipeline activity, new business, retention rates, or quotation volume.

Huge Fortune 500 companies use KPIs, but so can small agencies and independent agents. Selecting the right mix of insurance KPIs can offer better predictive performance analytics and a more rapid understanding of historical trends. They do not need to be complex to be effective. In fact, the opposite is a more accurate statement.

Producer KPIs should be simple and succinct, providing straightforward metrics to offer rapidly discernible insights. Some examples of insurance agency KPIs might include:
  • total quotations
  • closed quotations
  • total new business revenue
  • client retention
  • total leads, etc.
These KPIs can be extended to include:
  • lead source (and closes by lead source)
  • number of leads to generate a proposal
  • number of leads to generate a close
Of course, these are only a few examples. There are many important metrics of interest to producers. The key is to include sufficient KPIs to monitor producer pipeline health and close ratios, while limiting the number of KPIs so the information can be rapidly assimilated. Ideally, producers and agency owners should track KPIs monthly, on a rolling basis, to help understand trends and better predict future results.

Insurance agent lead KPI example
(current year vs. prior year)

JanuaryFebruary MarchQ1 Total
Current year304055 125
Prior year253540100

In the simple example above, the agent increased leads 25 percent from 100 to 125. If their close ratio is 20 percent (of all leads), then they would realize an additional five new accounts. Tracking monthly leads and then comparing them on a quarterly basis (and year over year), helps insurance agents determine current pipeline health and future growth potential.

Though the example above is linear, don’t be surprised if there are many short-term KPI anomalies. Over time, however, agents can establish clear trends. Sooner is better than later when it comes to these metrics. Combining KPIs with a highly targeted prospect profile and buyer persona, helps ensure optimum producer efficiency.

Agents and brokers who have not yet embraced KPIs should considering doing so at the beginning of any month, as it is not necessary to start at the beginning of a new quarter or on January 1st.