---
title: "How to Value Your Insurance Book of Business: The Complete Valuation Guide"
description: "Your book of business is your most valuable asset. Learn the 3 valuation methods and what multipliers apply to each product line."
url: https://unlockedcrm.ai/blog/insurance-book-of-business-valuation
canonical: https://unlockedcrm.ai/blog/insurance-book-of-business-valuation
category: "Agency Operations"
published: 2026-03-07
author: "Jacob Lock"
source: unLocked CRM — AI CRM for insurance agents
---

# How to Value Your Insurance Book of Business: The Complete Valuation Guide

## TL;DR

Insurance book multiples range from 1.0x (term life) to 4.0x (permanent life). Key drivers: 90%+ retention, diversified product mix, clean CRM data. CRM quality increases valuation 15–25%.

Every insurance agent's book of business has a calculable value — whether you're planning to sell, merge, retire, or understand your net worth.

## The 3 Valuation Methods

### Method 1: Revenue Multiple

| Product Line | Typical Multiple | Example ($100K revenue) |
| --- | --- | --- |
| Medicare Supplement | 2.0–3.0x | $200K–$300K |
| Medicare Advantage | 1.5–2.5x | $150K–$250K |
| Life Insurance (Permanent) | 2.5–4.0x | $250K–$400K |
| Annuities | 1.5–3.0x | $150K–$300K |
| Health/ACA | 1.0–2.0x | $100K–$200K |

### Method 2: Client-Based Valuation

Value per client × active clients. $200–$800 per Medicare client, $500–$2,000 per life/annuity client.

### Method 3: Discounted Cash Flow

Project future commissions over 5–10 years, discount at 10–15% rate. Most accurate but most complex.

## What Increases Book Value

- **High retention rates** (90%+ = premium valuation)
- **Diversified product mix**
- **Clean CRM data** (documented relationships, notes, policy details)
- **Recurring revenue** vs. one-time commissions
- **Younger client demographics** (longer lifetime value)

## FAQ

### When should I get a valuation?

Annually, even if you are not selling. Track growth and identify value drivers.

### Does CRM affect book value?

Yes. Clean CRM data with workflows can increase valuation by 15–25%.

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## Related

- https://unlockedcrm.ai/blog/insurance-agency-scaling-playbook
- https://unlockedcrm.ai/blog/insurance-crm-roi-calculator

---

Source: [How to Value Your Insurance Book of Business: The Complete Valuation Guide](https://unlockedcrm.ai/blog/insurance-book-of-business-valuation) — unLocked CRM, the AI CRM built for insurance agents. Citation permitted with attribution and a link to https://unlockedcrm.ai/blog/insurance-book-of-business-valuation.