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- #11
Scratch Agents- When Does It Get Better...?
- Thread starter Italianik
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Not Allstate, Erie. I am independent. ha NYC we may know each other
That's what I thought...
What state are you in? I'm in PA.
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- #13
NYC- it's me silly! We still miss ya up here. Only me and Linda to sit at the cool kids table.....
Well now that answers it...hahah
Several posters gave some numbers to illustrate their points, which got me wondering (please keep in mind that I am brand new to Property and Casualty insurance). Are there any industry standards/averages when it comes to personal and commercial policies? One number thrown out there was $1,000.00 per policy in force.
Is that number a pretty good average number on personal policies? If you take the total size of your book of personal business and divide it by the number of clients, what would that number be? If you take the total size of your book of commercial business and divide it by the number of clients, what would that number be?
I have asked the agency owner of the company I am working for these questions, but he seems either reluctant to reveal this information, or does not know how to get at the data to do the calculations, either way, several months into this I still don't know the answer to these questions.
I feel like I could do a much better job in planning (number of prospects I need to make contact with each day, percentage of those prospects I need to do business with, etc.) if I knew these numbers.
Is that number a pretty good average number on personal policies? If you take the total size of your book of personal business and divide it by the number of clients, what would that number be? If you take the total size of your book of commercial business and divide it by the number of clients, what would that number be?
I have asked the agency owner of the company I am working for these questions, but he seems either reluctant to reveal this information, or does not know how to get at the data to do the calculations, either way, several months into this I still don't know the answer to these questions.
I feel like I could do a much better job in planning (number of prospects I need to make contact with each day, percentage of those prospects I need to do business with, etc.) if I knew these numbers.
There are a lot of variables in average premium per policy or even in average premium per household, depending on the agency, location, who they write with and other things.
In the end, it is something for you to monitor in your agency, keeping in mind, average premium per household and policy density per household (how many items do you have insured in each house on average) are the numbers you should really watch.
A good P&C agency focused on auto/home and maybe some life/health should have at least 2.5 policies per household, with 3 (on average) being very good. Keep in mind, you'll have a lot of monoline cars or some house only policies, which pull the average down. Then you have households with 6 cars, which help it recover.
So if you have 2.5 items insured in a household, odds are, average premium will be somewhere around $2500, though in some areas, the home alone is more than that. This is where it depends on your location and your market.
For initial planning purposes, just shoot for total GWP (gross written premium) and then you'll be able to pretty quickly figure out your averages per household.
Dan
In the end, it is something for you to monitor in your agency, keeping in mind, average premium per household and policy density per household (how many items do you have insured in each house on average) are the numbers you should really watch.
A good P&C agency focused on auto/home and maybe some life/health should have at least 2.5 policies per household, with 3 (on average) being very good. Keep in mind, you'll have a lot of monoline cars or some house only policies, which pull the average down. Then you have households with 6 cars, which help it recover.
So if you have 2.5 items insured in a household, odds are, average premium will be somewhere around $2500, though in some areas, the home alone is more than that. This is where it depends on your location and your market.
For initial planning purposes, just shoot for total GWP (gross written premium) and then you'll be able to pretty quickly figure out your averages per household.
Dan
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