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🎯 '''Hit ratio (quote-to-bind ratio)''' measures the proportion of [[Definition:Quotation | quoted]] risks that ultimately convert into bound [[Definition:Insurance policy | policies]], serving as a key performance indicator for [[Definition:Underwriting | underwriters]], [[Definition:Broker | brokers]], and [[Definition:Managing general agent (MGA) | MGAs]] across the insurance industry. Expressed as a percentage, it captures the efficiency of the new business pipeline: if an underwriter quotes one hundred risks and binds twenty-five, the hit ratio is twenty-five percent. While the terminology is straightforward, the metric carries nuanced implications for pricing strategy, resource allocation, and competitive positioning.

⚙️ Tracking the hit ratio begins at [[Definition:Submission | submission]] intake. When a broker or [[Definition:Coverholder | coverholder]] submits a risk for quotation, the underwriter evaluates it, and — if it meets [[Definition:Underwriting guidelines | appetite criteria]] — issues a quote with proposed [[Definition:Premium | premium]], [[Definition:Deductible | deductible]], [[Definition:Policy wording | terms]], and [[Definition:Policy exclusion | exclusions]]. The hit ratio records how many of those quotes result in a [[Definition:Binding | bind]]. Modern [[Definition:Underwriting platform | underwriting platforms]] and [[Definition:Insurance technology | insurtech]] systems often calculate this metric automatically, segmenting it by line of business, geography, broker relationship, or risk size to reveal patterns. An underwriter might discover, for instance, that their hit ratio on mid-market [[Definition:Property insurance | property]] accounts is far higher than on large [[Definition:Casualty insurance | casualty]] risks, suggesting that their pricing or appetite is better calibrated in the former segment.

📊 A persistently low hit ratio may signal that an underwriter is pricing above the market, quoting on risks outside their sweet spot, or spending significant time on submissions with little realistic chance of binding — all of which erode operational efficiency and increase the per-policy cost of acquisition. Conversely, an unusually high hit ratio can be a warning sign that the underwriter is consistently the cheapest option, potentially indicating [[Definition:Underpricing | underpricing]] or adverse selection. The most commercially astute underwriting teams use hit ratio analysis alongside [[Definition:Loss ratio | loss ratio]] data: the goal is not simply to bind more business, but to bind the right business at adequate rates. For brokers, understanding the hit ratios of their carrier partners helps them direct [[Definition:Submission | submissions]] more effectively, reducing wasted effort and improving placement speed — a dynamic that ultimately benefits [[Definition:Policyholder | policyholders]] through faster turnaround and more competitive [[Definition:Firm order terms (FOT) | terms]].

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Submission]]
* [[Definition:Quotation]]
* [[Definition:Binding]]
* [[Definition:Underwriting]]
* [[Definition:Loss ratio]]
* [[Definition:Conversion rate]]
{{Div col end}}

Definition:Hit ratio (quote-to-bind ratio) - Revision history

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