Free Engineering Workbench calculator
Acquisition cost ratio
Cost of writing new business as a share of its premium.
Finance & unit economicsInsurance
How it's worked out
- Ratio = (commissions + other acquisition costs) ÷ new business premium
- Same period
NoteCompare with the lifetime value of the policies written, not first-year premium alone.
Need help acting on this number?
VVnT SeQuor's our services practice helps teams turn this metric into a plan.