Overview
We are excited to introduce our new Retention Calculation feature, designed to help you track client, policy, and premium retention over specific periods. This feature provides insights into how many clients, policies, and premiums you’ve retained over time, offering a clear understanding of your business's performance.
The retention calculation is divided into three main categories: Client Retention, Policy Retention, and Premium Retention.
1. Client Retention Calculation
The Client Retention calculation helps you track how many clients you have retained over a specific period.
Parameters Needed:
- Live Clients at Start: The number of clients at the beginning of the selected period (e.g., 6 months ago).
- Live Clients at End: The number of clients at the end of the selected period (e.g., today).
How It Works:
The feature calculates the percentage of clients present at the end of the period that were also present at the start, providing a clear retention rate.
Note:
- For clients using BMS systems like Acturis, we utilize the live_date and lost_date fields.
- For other BMS systems, we rely on internal data, primarily focusing on policy information.
Example:
If you had 100 clients six months ago and 90 clients today, your client retention rate would be 90%.
2. Policy Retention Calculation
The Policy Retention calculation helps you understand how many active policies you’ve retained.
Parameters Needed:
- Active Policies at Start: The total number of active policies at the beginning of the period.
- Active Policies at End: The total number of active policies at the end of the period.
How It Works:
This calculation determines the percentage of policies still active at the end of the selected period that were also active at the start.
Note:
- We rely on policy data, considering only unique policies and reviewing archived policies to ensure accuracy. Junk data is excluded.
Example:
If you had 200 active policies six months ago and 180 today, your policy retention rate would be 90%.
3. Premium Retention Calculation
The Premium Retention calculation allows you to track the retention of your policy premiums over time.
Parameters Needed:
- Total Premiums at Start: The total value of active policy premiums at the beginning of the period.
- Total Premiums at End: The total value of active policy premiums at the end of the period.
How It Works:
This feature calculates the percentage of the total premiums you’ve retained by comparing the total premium value at the end of the period to the total at the start.
Note:
- We rely on policy data, keeping only unique premiums and skipping junk data.
- Archived policy premiums are also considered in the calculation.
Example:
If the total premium value of your policies was $1,000,000 six months ago and $900,000 today, your premium retention rate would be 90%.
End Goal
The Retention Calculation feature allows you to make more informed decisions by comparing total clients, policies, and premium values over time. By tracking these key metrics, you can identify trends and take action to improve retention.
For additional support or questions about this feature, please contact our customer success team.