Why Benchmarking Matters More Than Ever
There’s something powerful about knowing where you stand. Not in a competitive, cutthroat way—but as a baseline for growth. Benchmarking helps you step back from day-to-day busyness and ask: Are we doing as well as we think we are?
It’s easy to fall into routines and assume your agency is running efficiently, but without measurable comparisons, that confidence might be misplaced—or worse, holding you back from real progress.
What Should You Benchmark?
Not everything needs to be measured, but some key areas can offer meaningful insight when compared to industry standards or similar-sized agencies:
- Close ratios and policy conversion rates
- Average client retention and renewal rates
- Time to quote and bind
- Average revenue per client
- Employee productivity (policies handled per CSR, for instance)
- Customer satisfaction and NPS scores
These metrics don’t just tell you what’s working—they help highlight the processes that might need some rethinking.
Turning Data into Direction
Once you’ve got benchmarks in place, the next step is figuring out what to do with the numbers. A lagging close rate might mean your quoting process is clunky. A higher-than-average churn rate could point to gaps in your renewal communication.
The beauty of benchmarking is that it gives your gut instincts something to latch onto. It backs up feelings with facts—and helps your leadership team align around clear, data-informed goals.
Don’t Compare Apples to Oranges
Benchmarking is only helpful if you’re comparing against relevant peers. A small, community-focused agency might not align with the same metrics as a national broker or digital-first platform. Size, product mix, target market, and service model all influence what “normal” looks like.
When choosing what to compare against, look for industry-specific studies or collaborate with peer networks. Some industry groups even facilitate anonymous benchmark sharing—so you can see how you stack up without anyone knowing it’s your data.
Benchmarking Is Not About Perfection
It’s tempting to chase top-tier numbers in every category. But the goal isn’t to win—it’s to understand. Maybe your agency doesn’t need to handle the most quotes per day if your close rate is high and clients are sticking around longer.
Sometimes, being slightly below average in one area makes sense if you’re prioritizing something else. The point is to benchmark with intention, not panic when you’re not in the top 10%.
Your Systems Matter More Than You Think
Getting clean, useful data requires the right infrastructure. Agencies using outdated tech often struggle to even access key metrics, let alone interpret them. A modern platform that can pull reports, track performance trends, and visualize data makes a world of difference.
That’s why it’s worth evaluating your insurance systems as part of your benchmarking journey. The right tools not only help you gather the data you need—they also make it easier to act on it. A user-friendly, flexible system can support better decision-making, faster pivots, and deeper insights into what’s really happening in your agency.
When your platform works with you—not against you—it becomes a central part of your growth playbook.
Involve the Team in the Conversation
Benchmarking isn’t just for owners or managers. Share insights with your team. Let them see the numbers, understand the goals, and contribute to the solutions. It turns benchmarks into shared challenges instead of top-down mandates.
Whether it’s improving customer service scores or tightening quote turnaround times, frontline staff often have the best ideas for improvement because they’re living the process daily.
Track Progress Over Time
Benchmarks are only useful if you revisit them regularly. That doesn’t mean obsessing over weekly changes, but building a rhythm of review—quarterly, for example—helps you catch trends early and adapt.
Are changes paying off? Is a new process helping or creating new friction? Benchmarking helps you avoid getting stuck and encourages continuous (but grounded) improvement.
Final Thoughts
At its best, benchmarking is a mirror. It doesn’t shame—it reveals. It gives you context, clarity, and a compass to navigate your agency’s growth with purpose.
You don’t need to be the biggest or the fastest. But with the right benchmarks in place, you can make sure you’re becoming better—and moving in a direction that fits your goals, your team, and your clients.
