What is the average revenue of an insurance agency?
Asked by: Dr. Stefanie Wilderman IV | Last update: June 29, 2025Score: 4.9/5 (75 votes)
What is the average profit margin of an insurance agency?
According to industry experts, most insurance agency owners operate with an average profit margin of 2% to 10%.
What is the average turnover for the insurance industry?
Overall turnover rate in the finance and insurance industry was 25% in 2020, according to Zippia. And 43% of insurance talent employees surveyed by Deloitte say it's getting harder to find skilled candidates in a number of functional areas including claims.
What is revenue in an insurance agency?
Most insurance agency revenues come in the form of a paid commission. An agency is paid a percentage of the total cost of the policy offered. The total cost is the premium and the percentage the agency earns is typically called, agency revenue.
How profitable are insurance companies?
Net income remained mostly unchanged at just under $17 billion for the first six months of 2022 compared to the same period in the prior year. The industry's profit margin decreased modestly to 3.4% from 3.7%, while the combined ratio remained mostly unchanged at 96%.
I Asked 166 Life Insurance Agent How Much Money They ACTUALLY Make Per Month
What is a good EBITDA for an insurance agency?
According to MarshBerry, today's average EBITDA margins are between 15 and 20 percent, with high-performing agencies demonstrating margins in the 25-to-30-percent range. Smaller agencies typically sell for 4 to 6 times their EBITDA, while agencies larger than $1 million typically fetch 5 to 8 times EBITDA.
What is the average agency turnover?
As of 2022, multiple sources report the average marketing agency turnover rate is right around 30% annually. You read that correctly.
What is the turnover rate for insurance agents?
According to some estimates, approximately 30% of new insurance agents quit within three months. By the three-year mark, 87% of agents have either moved on to another company or left the industry altogether. Retaining skilled, experienced agents is a challenge all its own.
What is the standard turnover in insurance?
Standard Turnover – the proportional equivalent, for the period equal to the lndemnity Period, of the Turnover realised during the period between the date of commencement of the Business and the date of the Event.
Can insurance agents make 100k?
An agent selling one or two policies per week at this commission level could make $50,000 to $100,000 in their first year as an agent.
What is a good profit margin for an agency?
The key is to keep total overhead within 20% to 30% of your agency's gross income. Maintaining overhead costs within this range ensures your agency has sufficient funds to cover operating expenses while leaving a healthy profit margin of 20% to 30%.
What multiples do insurance agencies sell for?
According to most valuers, insurance agencies have EBITDA multiples of 5x -7x, and some as high as 11x. Agencies with higher EBITDA can enjoy higher multiples. The vice versa is also true: Agencies doing less than $1 million in annual revenue typically enjoy 4x - 6x EBITDA multiples.
Is it hard to run an insurance agency?
Just like other types of businesses, running your own insurance agency requires hard work, commitment, and dedication. It also helps if you have a certain level of industry experience as this puts you in a much better position to succeed.
Can a insurance agent be a millionaire?
If you have a great work ethic and are willing to place yourself out there to establish relationships with clients, you will get more opportunities to earn a higher income. Selling insurance may even make you a millionaire.
How much do AAA agency owners make?
As of January 2025, the average annual salary for an Agency Owner at American Automobile Association (Aaa) is $264,217, which translates to approximately $127 per hour.
Do insurance agents make 6 figures?
A life insurance agent's income potential is uncapped. Some of the highest earners make well over six figures each year, while others choose to work as part-time insurance agents to earn some extra cash.
What company has the highest turnover rate?
A new Payscale report published on Thursday ranked Massachusetts Mutual Life Insurance Company as having the highest turnover rate out of all of the Fortune 500 companies. Average employee tenure was a little over nine months.
How profitable is an insurance agent?
For auto and home policies, captive insurance agents earn about 5% to 10% of the entire premiums paid for the first year, while independent agents receive about 15%. Commission rates for renewals range between 2% and 15%, averaging around 2% to 5%, regardless of the type of agent.
How many clients does the average agency have?
Many of them were retainer clients, but a lot were one-off clients. For maximum profits and minimum headaches, most agencies should have 10-20 active clients. That is, 10-20 is the ideal client count for agencies, unless they've successfully implemented a “pod” structure. Less than 10 active clients?
What is a realistic turnover rate?
According to Gallup, 10% turnover is healthy, but every industry and every organization is different.
How much does it cost to buy an insurance agency?
The exact amount required can vary widely depending on various factors such as your location, the scale of your agency, and the types of insurance you plan to offer. You should be prepared to invest anywhere from $5,000 to $50,000 or more for a small to mid-sized agency.
Is 20% a good EBITDA?
A “good” EBITDA margin is industry-specific, however, an EBITDA margin in excess of 10% is perceived positively by most.
How to calculate the book value of an insurance company?
After gathering the company's financial information, you are ready to use it to calculate its book value. Add all the asset values together to find total assets, and all the liabilities together to find total liabilities. Subtract the total liabilities from the total assets in order to find the company's book value.