Average Number of Clients Per P & C Agents?

[djs]

Good question. It obviously varies depending on the policies per household, type of clients, etc, but the biggest thing I've noticed is whether you want to grow or if you are okay with your current policy level.

I think if you are writing significant new business, you need help around 750 policies. Earlier than that is good, but you probably can't afford it. If you are 'maintaining', you can probably handle 1000 to 1200 policies by yourself, though you'll drop a few balls and will burn out if you do it for any length of time.

I would plan a CSR per 1000 policies. I've been told you need one for every 750 policies and I've been told 1 CSR can easily handle 1500 policies. Depends on the book and your goals. Yes, CSR's can handle more policies than an agent, because the agent will work on the big problems, the CSR will pass those to the agent in most cases.

Dan

 

[OCinsurance]

Your post was simple great. I think that we are now at around 5000 policies and we have 2 CSRs, 2 producers, and the owner. We are in need of a new CSR/producer ASAP because we are getting so many calls and we have so many quotes to get out.

I remember when we hit those different levels and had to get past the tough point where you can afford to hire someone.

Are you talking clients (i.e., households) or policies? I assume you are referring to personal lines, not commercial?

In figuring this out, you probably need to weed out those with under 5 years in business, or they will pull the average way down. Face it, they start with 0 and it can take a while to grow.

....
Dan

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There are also other factors to consider:

- agency autmation
- efficiency
- the type of clients that you bring in -- constant price shoppers vs customers looking for great coverage

 

[wfs]

I have spoken to 6 State Farm agents in my area. Every one averages at least 100 policies per month, some are over 200 per month. These agents are New Market agents, so they get the SF subsidy - without it I see bankruptcy, since they ALL have at least 3 employees. That's the only way they make their numbers and keep the company happy.

Based on their current numbers, they all should be fine in 4-5 years, but I think the scenario djs painted out is about right, State Farm or not.

Not to mention the certain debt that is incurred in order to make these numbers. I think it will work out in the long run, but no doubt the P&C biz is very hard in the beginning.

 

[amgeater]

I don't think you can come up with an average for all agents but I would guess:

Personal Lines:
Standard market agents: 800-1000
non standard auto 1200-2000

Commercial Lines:
Small Business ($25k and under) 400
Middle Market (25-250k) 150ish
Large Commercial (250+) Under 75
National Brokers: 50 or less

Damn those Numbers for Commercial are serious