Insurance Agency Retention Rate Calculator
Calculate policy-level and premium-weighted retention rates — the same way Applied Epic measures them. Free, instant, no signup required.
Formula used:
Retention Rate = (End Policies - New Policies) / Beginning Policies x 100
How Applied Epic Calculates Retention
Applied Epic calculates retention at the policy level using a straightforward formula: the number of policies that renewed (i.e., policies at the end of the period minus new business) divided by the total policies at the start of the period.
For premium-weighted retention, Epic removes new business premium and carrier rate increases from the ending premium to isolate organic retention. This gives agencies a clearer picture of how well they are keeping existing revenue, separate from growth or market-driven price changes.
Most agencies track both metrics. Policy-count retention tells you how many relationships you are keeping. Premium retention tells you how much revenue you are keeping. An agency can have high policy retention but low premium retention if they are losing their largest accounts — or vice versa.
The industry standard measurement period is annual, aligned with the calendar year or the agency's fiscal year. However, tracking quarterly can surface trends faster and give you more time to course-correct.
5 Common Retention Calculation Mistakes
1. Counting new policies as retained
The most common error. If you added 100 new policies and ended with 1,100 from a starting book of 1,050, your retention is not 100%. You need to subtract new policies from the ending count: (1,100 - 100) / 1,050 = 95.2%.
2. Ignoring carrier rate increases in premium retention
If carriers pushed a 7% rate increase and your premium grew 5%, your organic premium retention is actually negative. Always strip out rate-driven growth to get a true picture.
3. Using inconsistent time periods
Comparing Q1 retention to annual retention is meaningless. Pick a consistent measurement period and stick with it. Annual is standard, quarterly is useful for trend analysis.
4. Not segmenting by line of business
Personal lines and commercial lines have very different retention dynamics. A blended rate can mask serious problems in one segment. Break your retention down by LOB, then by carrier.
5. Measuring only policy count OR only premium — not both
An agency can show 92% policy retention while losing 15% of premium if the departing accounts are disproportionately large. Track both metrics to get the full picture.
Stop guessing your retention numbers. Let 5G Vector calculate them automatically from your Applied Epic data.
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