Supplemental Information
Revenue Opportunity Calculator
Supplemental Information
All inputs on the calculator are used to estimate P&C agency revenue opportunity.
This is a guide to help explain what the numbers in the Revenue Opportunity Calculator (BB10522) input and output screens mean to a P&C agency.
Response rate default is set at 30%. It will change based on input from the P&C Agency. Close ratio default is set at 30%. This is the percent of respondents that will be sold.
Moderate Net Worth: Less than $100,000/Other/Undefined. Middle Net Worth: $100,000 – $999,999 of investable assets. High Net Worth: $1,000,000+ of investable assets (insure higher-end boats, cars, jewelry, etc.). The mix for personal life products sold is based on historical data of sold cases through the Principal Financial Group.® Expected number of sales is calculated by multiplying: Customers X response rate X close ratio. To calculate estimated commissions: Multiply product sales x average premium for each of the three product types. Add the results. Multiply total x agency split %. Small Client: 1-10 Employees 2011 Medium Client: 11-100 Employees Large Client: 101+ Employees Concept split is based on the historical ratio of proposals prepared in Advanced Solutions. Estimated renewals are based on the present value ratio (from Inputs screen), the lapse rate and the renewal comp rate. It assumes all renewals are paid to the P&C agency.
we’ll gIve yOu an edge® Principal Company. Principal National National Life Life Insurance Insurance Company Company and Principal Life Insurance Company.
Principal issuing insurance insurance companies companiesof ofthe thePrincipal PrincipalFinancial FinancialGroup®, Group®, PrincipalNational National(except (except in in New New York) York) and and Principal Life are issuing Des Moines, Iowa 50392-0001, www.principal.com Des 50392-0001, www.principal.com For professional use only. only. Not the public. Forfinancial producer information Notfor fordistribution use in salestosituations. BB10564-04 || 10/2014 09/2012 || t12091002b6 BB10564-05 t14101403g5
Supplemental Information
All inputs on the calculator are used to estimate P&C agency revenue opportunity.
This is a guide to help explain what the numbers in the Revenue Opportunity Calculator (BB10522) input and output screens mean to a P&C agency.
Response rate default is set at 30%. It will change based on input from the P&C Agency. Close ratio default is set at 30%. This is the percent of respondents that will be sold.
Moderate Net Worth: Less than $100,000/Other/Undefined. Middle Net Worth: $100,000 – $999,999 of investable assets. High Net Worth: $1,000,000+ of investable assets (insure higher-end boats, cars, jewelry, etc.). The mix for personal life products sold is based on historical data of sold cases through the Principal Financial Group.® Expected number of sales is calculated by multiplying: Customers X response rate X close ratio. To calculate estimated commissions: Multiply product sales x average premium for each of the three product types. Add the results. Multiply total x agency split %. Small Client: 1-10 Employees 2011 Medium Client: 11-100 Employees Large Client: 101+ Employees Concept split is based on the historical ratio of proposals prepared in Advanced Solutions. Estimated renewals are based on the present value ratio (from Inputs screen), the lapse rate and the renewal comp rate. It assumes all renewals are paid to the P&C agency.
we’ll gIve yOu an edge® Principal Company. Principal National National Life Life Insurance Insurance Company Company and Principal Life Insurance Company.
Principal issuing insurance insurance companies companiesof ofthe thePrincipal PrincipalFinancial FinancialGroup®, Group®, PrincipalNational National(except (except in in New New York) York) and and Principal Life are issuing Des Moines, Iowa 50392-0001, www.principal.com Des 50392-0001, www.principal.com For professional use only. only. Not the public. Forfinancial producer information Notfor fordistribution use in salestosituations. BB10564-04 || 10/2014 09/2012 || t12091002b6 BB10564-05 t14101403g5
