As independent insurance agents, your book of business is more than just your income; it’s the foundation of your agency. It shows the strength of your client relationships, carrier partnerships, and long-term stability. Like any portfolio, however, it can slowly get out of balance. Rates change, carriers shift their focus, and sometimes, too many price shoppers join your client list. Suddenly, your retention rate drops, your service team feels overwhelmed, and you’re always dealing with urgent issues. If this sounds familiar, it may be time for a checkup.
Here are 10 key signs your book of business could be unhealthy and what you can do about it.
1. You’re Overly Dependent on a Single Carrier
It’s easy to rely on your favorite carrier, especially if they have a smooth quoting platform, a strong underwriting team, and a familiar appetite. But if 40% or more of your book is with one company, you could be setting yourself up for trouble: A single rate increase or change in carrier appetite can result in many unhappy clients, extra remarketing work, and possible revenue loss.
To avoid this, aim for carrier diversity. Ideally, no single carrier should make up more than 25–30% of your book. This helps spread your risk and gives you more flexibility when markets get tough.
2. You Have Too Many Clients in the Wrong Market Segment
A book filled with price shoppers, single-line auto clients, or very small commercial accounts might seem active, but it’s often not profitable. These clients usually leave first when rates go up and rarely respond to cross-sell offers.
The best approach is to build your book around ideal clients: those who care about coverage, not just price. So, whenever you can, package personal and commercial lines, and focus your marketing on building long-term relationships instead of quick sales.
3. Your Retention Rate Is Below 85%
Retention is one of the most important health metrics for any agency. If your rate is below 85%, something may be wrong, such as service bottlenecks, misaligned coverage, or not enough proactive communication. High retention not only means fewer problems, but also higher lifetime value and less time spent looking for new business.
To avoid this, track your retention each quarter. Create a renewal process that includes proactive communication, coverage reviews, and value reminders. The healthiest books retain 88–95% of clients year after year.
4. Your Revenue Per Client Is Too Low
If your average client generates $300 in annual revenue while your peers average $600, that’s a clear sign you’re missing out on some opportunities. Low revenue per client usually means accounts aren’t properly packaged, or producers aren’t identifying additional needs, such as umbrella or commercial coverage.
To better support your clients while increasing your business, cross-sell strategically. A simple coverage review conversation can lead to significant growth without needing to add new clients. Plus, multi-line clients are much more likely to remain loyal over time.
5. You Don’t Know Your Key Metrics
If someone asked you your current total premium, retention rate, loss ratio, or top carriers, would you know off the top of your head? If you don’t know your numbers or your business, you can’t make informed decisions. You might be losing profitable business or over-servicing unprofitable accounts without realizing it.
It’s important to stay on top of your stats. Review your book analytics monthly. Use agency management system reports or dashboards that show production, retention, and revenue by carrier, line, and client type. Clarity is power.
6. Service Work Is Overwhelming Your Producers
Producers should be producing. But if they’re bogged down with remarketing, billing questions, or reissuing ID cards, something’s off in your workflows. When producers essentially become service reps, sales stall, and morale drops fast.
Automation and clarity can make all the difference. Streamline tasks with automation where possible and clarify roles between service work and sales. Consider service centers or virtual assistants for repetitive tasks. That way, your producers can focus their efforts on revenue-generating work.
7. You’re Writing Policies Outside Your Expertise
We’ve all been there: that niche client who needs a policy “just a little outside” your normal wheelhouse. But too many of these can create E&O risk, unhappy clients, and wasted time chasing small or complex accounts. It doesn’t have to be this way.
To stay efficient and effective, stay in your lane and partner strategically. If you receive requests outside your niche, you can either refer out or collaborate through your ASNOA network. Doing so protects your time, your reputation, and your profitability.
8. Your Book Isn’t Growing Organically
If your book only grows when you add new business, and not when existing clients expand their coverage, your relationships aren’t deep enough. Organic growth, whether from cross-sells, referrals, or increased coverage, is one of the best indicators of long-term book health.
This is a fairly easy fix! Train your team to recognize cross-sell cues. Build a “coverage check-in” culture where every renewal is an opportunity to add value, not just renew.
9. You Have Too Many “One-and-Done” Clients
If you’re seeing a steady stream of one-term clients, your value proposition may not be resonating with them. You might be attracting transactional buyers through quoting sites or undercutting on price, only to lose them on their next renewal.
To avoid this, simply refine your messaging. Focus on education, protection, and personalized service, not just price. The right clients will stay with you, and the wrong ones will filter out naturally.
10. Your Team Is Constantly in “Firefighting” Mode
Every week brings a new wave of last-minute renewals, urgent re-quotes, and frustrated clients. Everyone’s working hard but not necessarily smart. This is the ultimate symptom of an unhealthy book. It means you’re reacting, not leading.
So, take a step back and analyze where the fires are coming from. Are certain carriers driving most of the remarketing? Are specific workflows or clients taking too much time? Often, a few small process improvements can restore both calm and profitability.
The Bottom Line
A healthy book of business runs like a well-oiled machine: it’s balanced, diversified, and predictable. It doesn’t require constant firefighting because it’s built on solid relationships, consistent processes, and smart data management. If you recognize several of the warning signs above, don’t panic. Every agency hits rough patches. The key is to treat your book like you treat your clients: with care, attention, and regular reviews. Run your numbers. Rebalance your carriers. Refine your client mix. A healthier book means happier clients, steadier revenue, and a far more sustainable business for you and your team.