Data Stewardship (2014)

APPENDIX A Example Definition and Derivation

An example of a robust definition and derivation, developed using repeatable Data Stewardship processes.

Keywords

definition, derivation, metadata

Definition of “Unique Quote to Close Ratio”

- The ratio (expressed as a percentage) of unique and complete quotes that result in closed sales. A sale is considered closed when a policy has resulted from the quote and the quote is thus bound.

- The “unique quote to close ratio” can be used by insurance and sales as a measure of overall competitiveness of a product. A sudden change in the ratio may indicate that competitive conditions have changed suddenly. In addition, the ratio helps sales managers and sales producers understand how many quotes actually close from month to month, and thus how much of the work done to provide quotes actually results in new business.

- This data element does not assign agent ownership to the quotes, as that is handled by “agent unique quote to close ratio.”

Derivation of “Unique Quote to Close Ratio”

- The “unique quote to close ratio” is determined by dividing the number of quotes that actually closed (resulted in bound policies) in a given time period by the number of unique and complete quotes for that time period. All accounts (including House Accounts) are counted.

- The quotes that actually closed are determined by finding those quotes that were bound and have a policy number attached.

- Complete quotes are those quotes that have a certain minimum of information provided and from which a premium is generated. For automobile, motorcycle, and watercraft quotes, this means that at least a BI premium was generated. For HO, CEA, and renter quotes, this means that a coverage C premium was generated. For personal liability, this means that a premium was generated for umbrella liability coverage. Note that since this is the only coverage offered on an umbrella, any premium would indicate that completeness.

- Unique quotes are counted as a quote for a particular type of insurance business for a customer (name and address).