Best Tips For Your Insurance Agency Key Performance Indicators

KPIs are the key performance indicators, and are used by organizations to assess performance. They are quantifiable measures that can help quickly identify historical, current and future performance, based on the type of KPI and used the platform chosen for use. For example KPI insurance agency could include the number of net new customers, net losses, growth renewal quotes producer, average book of the company by the producer, the Revenue Agency, and revenue per employee. For purposes of this article, however, we will focus on performance indicators for the producers of the insurance agency if the KPI is also a subset of key agency managers and owners.

Key Performance Indicators should reflect the objectives of the agency, and it is very important to choose KPIs that help quickly identify tactical and strategic success of your marketing efforts. For example, Producer KPI are noted below and may be very similar to the KPI for sales industry many executives:

New Revenue Commission
Term of office
Ratio of net commissions new renewal commissions
Book average firm by the producer
Revenue by line of coverage
Total new quote
Close ratio (ratio of citations Farm)
Underwritten by lead source
YTD revenue growth (and every year)
Turnover per employee

These key performance indicators to measure your activity, and provide indicators of past performance and future success. Year in income for the year to compare current performance to past performance, while Web meetings and proposals are forward-looking, an indicator of what your business might look like the future. If your new prospect meetings fell by 20% during the last quarter from the previous quarter, you can be almost certain that you will suffer a decline in new business. However, if you lived the same kind of down from a year earlier, you have a better indication that you are on track for year comparable sales a year.

KPIs vary by agency, but if they are to be truly useful to your organization, you must consistently and accurately define and measure them. KPI should incorporate the goals or objectives to monitor and measure performance. For example, our aim is to close the company 50% of our proposals and 25% of our prospects for meeting Web. For this purpose we measure against our KPI for this category to track our progress. Your agency may have a goal of maintaining a $ 1 million book of business for each veteran producer. You might have a different goal for new producers. These goals should tie into your overall monitoring KPIs, providing quick insights on the health of your agency, with strong indications of future performance. These KPIs can then be measured year on year - providing insight into your specific historical performance in critical areas of mission. Large agencies should consider using KPI rollups, where KPI sales, marketing, accounting and corporate services are monitored, with a mission of some critics of each department KPI roll to a list executive. This can be done manually or using an automated system.

What kind of systems can be used for the KPI? Your agency can use something simple, Excel spreadsheets, CRM, management systems, sophisticated Agency Dashboard KPI. Metric chosen gleaned from Web Analytics and Web monitoring tools are also used. KPIs must be kept at a modest number for optimal effect. For example, monitoring of 10 key performance indicators monthly is reasonable, but the monitoring of 50 would result in information overload. This is analogous to the dashboard of your car. Your actions could include the speed, fuel level, RPM, odometer, engine temperature and oil level. It's a total of six key performance indicators that can be monitored while driving. Some cars that offer more sophisticated KPIs, average miles per gallon, MPG current tripometer, and distance to empty. These additional KPI can not be permanently because they can not be considered critical to your driving. Think about your insurance agency KPI in the same way, followed closely only those that are critical to your success.