What Is Cost Per Policy (CPP) in Insurance?
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Cost per policy is what each policy you wrote cost you in lead spend.
What it is
Cost per policy = lead spend ÷ policies written from those leads.
If you know your rates instead of your totals, it is the same number worked out another way: cost per lead ÷ (quote rate × close rate).
A worked example
Example. Leads cost $12 each. You quote half of them, and a quarter of your quotes become policies. Cost per policy is $12 ÷ (0.50 × 0.25) = $96.
Why it beats cost per lead
Cost per lead says what a lead costs. Cost per policy says what a customer costs.
Example. Vendor A charges $10 a lead, and 2 in every 100 leads become a policy: $500 a policy. Vendor B charges $20, and 10 in every 100 become a policy: $200 a policy. The dearer lead is the cheaper customer.
How Producify works it out
On the Marketing ROI tab of the Producify Leads page, Cost per policy is a source's spend ÷ the policies written from its leads, before commission.
Spend is what the vendor cost in the period, less credited returns. Read the ROI page walks through the table.
Frequently Asked Questions
How do I lower my cost per policy?
Quote more of the leads you buy, close more of the quotes, or pay less per lead. Each one moves it.
Does cost per policy include the cost of servicing the policy?
No. It is lead spend per policy and nothing else.
See what each customer costs
Cost per policy for every lead source: spend ÷ policies written.
Run your own numbers with the free insurance lead ROI calculator.