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Measure top-client share of agency income using stable relationship IDs. Separate recurring income and one-off items.
Carrier concentration concerns placement dependency; client concentration concerns the agency's income dependency. A diversified carrier panel can coexist with one client producing a large share of agency income. Stable client grouping is essential because duplicate entities or subsidiaries can hide the relationship's true scale.
One row represents: one reporting client or reviewed parent relationship for a defined income period.
Useful fields: Client ID, approved parent group where applicable, commission, fees, recurring category, one-off category, period, branch and identity-review status.
Choose client or parent-group reporting based on the review purpose and preserve both levels where useful. Rank comparable commission and fee income, then calculate top-one, top-five or another clearly labeled share. Show recurring and total-income views separately. Do not add carrier premium to the agency-income denominator.
The following records and amounts are invented to show the method. They are not customer results, industry benchmarks or a forecast of Covirage performance.
| Relationship | Agency income | Share of $200,000 |
|---|---|---|
| Client A | $50,000 | 25% |
| Client B | $30,000 | 15% |
| Client C | $20,000 | 10% |
| Remaining clients | $100,000 | 50% |
The top three relationships contribute 50% of agency income. If A includes a $20,000 one-off fee, concentration of recurring income will differ and should be calculated with a consistent recurring denominator. The 50% figure alone does not establish an unacceptable level of risk.
Concentration describes dependency; it does not predict departure or loss probability. A broad client group may also contain independently managed relationships. Explain the grouping basis and avoid unsupported risk thresholds.
Bring a small, authorized sample to Covirage for insurance agencies and brokers. Use the sample to discuss the fields and views your business needs. A dashboard or AI analyst can help explore this question when the required data and definitions are available; missing records still need to be resolved.
Upload sample data to check its structure. Keep unnecessary personal, claims and policyholder details out of an initial sample. The sample check does not establish that every analysis in this guide is available automatically.
These references provide terminology or governance background. The worked example and proposed review method above are original illustrations, not prescribed industry standards.
No. Client concentration measures who supplies agency income; carrier concentration measures where business is placed. Keep the two views separate.