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📋 '''Net promoter score (NPS)''' is a customer-loyalty metric that insurance organizations use to gauge how likely [[Definition:Policyholder | policyholders]], [[Definition:Insurance broker | brokers]], or distribution partners are to recommend their products and services. Calculated from a single survey question — "On a scale of 0 to 10, how likely are you to recommend us?" — it distills customer sentiment into a number ranging from −100 to +100. In an industry historically criticized for opaque processes and slow [[Definition:Claims handling | claims handling]], NPS has become a boardroom-level benchmark for [[Definition:Insurance carrier | carriers]] and [[Definition:Insurtech | insurtechs]] seeking to differentiate on experience rather than price alone.

📐 Respondents are grouped into three categories: Promoters (scores 9–10), Passives (7–8), and Detractors (0–6). The score itself is the percentage of Promoters minus the percentage of Detractors. An insurer polling [[Definition:Policyholder | policyholders]] after a [[Definition:Claims process | claims process]] might find 45 percent are Promoters and 25 percent are Detractors, yielding an NPS of +20. Many carriers segment the measurement further — tracking separate scores for [[Definition:Underwriting | underwriting]] interactions, [[Definition:Policy issuance | policy issuance]], renewal, and claims — to pinpoint exactly where friction erodes loyalty. [[Definition:Insurtech | Insurtech]] companies often benchmark aggressively against traditional carriers, using a high NPS as evidence that digital-first service models outperform legacy approaches.

🎯 Beyond marketing narratives, the score carries strategic weight because customer retention directly affects [[Definition:Loss ratio | loss ratios]] and [[Definition:Acquisition cost | acquisition costs]]. Retaining satisfied policyholders reduces the need for expensive new-business campaigns and tends to improve risk selection over time, since loyal customers with good claims histories stay in the book. For [[Definition:Managing general agent (MGA) | MGAs]] and [[Definition:Program administrator | program administrators]] that depend on carrier partnerships, a strong NPS among brokers can be the deciding factor when [[Definition:Insurance carrier | carriers]] evaluate whether to renew or expand [[Definition:Delegated underwriting authority (DUA) | delegated authority]] agreements. In short, what began as a simple survey question now influences underwriting partnerships, investor confidence, and long-term profitability.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Customer experience (CX)]]
* [[Definition:Policyholder retention]]
* [[Definition:Claims handling]]
* [[Definition:Insurtech]]
* [[Definition:Acquisition cost]]
* [[Definition:Digital distribution]]
{{Div col end}}

Definition:Net promoter score (NPS) - Revision history

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