Quotes to Contracts Creation Ratio
The number of quotes getting converted to contracts is a key measure of your sales channels. As the adage goes, it’s all about conversion ratios. This metric is key even for giants such as Google.
Renewals reflect your retention rate. If your retention rate is not strong it’s important to find out what can be done to improve and increase it.
New Business Volume
The new business metric reflects whether your business is growing. It’s common for any business to have both positive spikes and negative spikes, but if this metric reflects a flat line or plateau, then a review of the business plan may be warranted.
In the premium finance business, cancellations need to be not only carefully managed but also monitored. It is imperative cancellations are executed systematically to ensure zero losses. Cancellation that occur during the early months of a loan term incur loss of finance charge, if you are finding a large portion of the cancellations are occurring in the early months then a review of the type of policies being financed and ways to reduce those types of policies must be undertaken.
Write-offs reflect the amount of finance charge allocated as uncollectable. A key transaction that contributes to write-offs is the delayed return of unearned premiums from companies and GA(s) on cancelled contracts. It is important to keep a pulse on such write-offs. If you notice it is a recurring pattern with a given company or GA then decide if it warrants not financing premiums with this company or GA.
Connect with Third Eye Solutions. We can enable your premium finance company to flourish.