Blog · Wallet share and penetration · Insurance brokers
The complete placement share calculation on five commercial insurance clients, small enough to check by hand: the lines placed with the broker and their premium, the lines each client places at all from its stated programme or the sector norm, placement share by count and by premium, the lines placed elsewhere with their estimated premium, the source column, the ceiling from clients where the broker holds the whole programme, and the identity that placed premium sums to the ledger, so a reader can reproduce every figure and then run it on their own placement ledger.
Placement share is lines held over lines placed and the premium behind each, and on five clients it can be worked by hand with the source on each line. This page works the ledger, the programme per client, both shares, the lines elsewhere, the ceiling and the identity.
Lines: property (PR), casualty (CA), motor fleet (MF), professional indemnity (PI).
| Client | Sector | Placed with the broker | Premium with the broker |
|---|---|---|---|
| A | Manufacturing | PR, CA, MF, PI | $410,000 |
| B | Manufacturing | PR, CA, MF | $260,000 |
| C | Professional services | PI | $90,000 |
| D | Logistics | MF | $150,000 |
| E | Retail | PR, CA | $180,000 |
| Total | $1,090,000 |
Placement ledger total for the five: $1,090,000. Identity holds.
| Client | Lines placed at all | Source | Premium elsewhere |
|---|---|---|---|
| A | PR, CA, MF, PI | Stated at review | $0 |
| B | PR, CA, MF, PI | Norm: manufacturing of B's size places PI | PI $60,000 (norm) |
| C | PI, PR, CA | Stated | PR $40,000, CA $25,000 (stated) |
| D | MF, PR, CA | Norm: logistics places all three | PR $70,000, CA $45,000 (norm) |
| E | PR, CA, PI | Norm | PI $20,000 (norm) |
By count = lines with the broker ÷ lines placed By premium = premium with the broker ÷ (premium with the broker + premium elsewhere)
| Client | By count | By premium | Elsewhere | Source of elsewhere |
|---|---|---|---|---|
| A | 4 of 4: 100% | 100% | $0 | Stated |
| B | 3 of 4: 75% | 260 ÷ 320: 81% | $60,000 | Norm |
| C | 1 of 3: 33% | 90 ÷ 155: 58% | $65,000 | Stated |
| D | 1 of 3: 33% | 150 ÷ 265: 57% | $115,000 | Norm |
| E | 2 of 3: 67% | 180 ÷ 200: 90% | $20,000 | Norm |
| Rank | Client | Elsewhere | Lines | Source | Conversation |
|---|---|---|---|---|---|
| 1 | D | $115,000 | PR, CA | Norm | Logistics clients of this size place both; ask |
| 2 | C | $65,000 | PR, CA | Stated | The client told us; a quote at renewal |
| 3 | B | $60,000 | PI | Norm | Manufacturing clients place PI; ask |
| 4 | E | $20,000 | PI | Norm |
Client A holds the whole programme. On this book, 100 percent is reachable; gaps are against it.
Count as the ranking. C and D tie at 33 percent; D has nearly twice the premium elsewhere.
Source unstated. C's stated $65,000 and D's normed $115,000 read alike; one is the client's word and one is an estimate.
Norm from a survey. Logistics clients "typically" place five lines; D's gap invents two lines the broker's own logistics clients do not place.
Placed premium not reconciled. A policy in the ledger under a different client code and A's programme reads 75 percent.
The same lines per client, the same stated-or-norm source per line, both shares, ranked by premium. Covirage runs it on the placement ledger and the client master every quarter. The placement share guide covers the measure, and the stated and estimated guide covers the source column.
Stated by the client at review where it is; otherwise the sector norm for the line at the client's size, from the broker's own clients of that sector who place the line with the broker. Labelled per line. Client B's professional indemnity figure is normed.
Because on the broker's own book, clients with the whole programme placed exist, so the natural ceiling in this category is a full programme. In a market where clients split by line as a policy, the ceiling from the book would be lower and the gaps measured against it.
By premium, because that is the revenue at stake. By count is beside it: a client at 75 percent by count and 40 by premium is missing its largest line, and the pair says so.