--- title: "Premium Under Management: The Single Most Important Number in Your Insurance Book" description: "Total premium under management tells you the size, trajectory, and health of your book. Here's how to track it in real time and what the trends reveal about your business." url: https://unlockedcrm.ai/blog/premium-under-management-insurance-agents canonical: https://unlockedcrm.ai/blog/premium-under-management-insurance-agents category: "Business Building" published: 2026-04-16 author: "Jacob Lock" source: unLocked CRM — AI CRM for insurance agents --- # Premium Under Management: The Single Most Important Number in Your Insurance Book ## TL;DR Premium Under Management (PUM) is your total active premium across all carriers — the single most important number for forecasting income, valuing your book, and setting growth goals. BOB Analytics tracks PUM in real time with breakdowns by product line, carrier, time period, and new vs. renewal premium. ## Key data points - Premium Under Management directly determines commission income — a $2.5M book at 8% blended rate generates $200,000 annually. - Insurance books typically sell for 1.5–2.5x annual renewal commissions, making PUM tracking essential for valuation. - Real-time PUM tracking via 332 carrier feeds replaces annual spreadsheet estimates that are outdated within weeks. Ask most insurance agents how much premium they have under management, and the answer is a guess. Some agents have a rough idea. Others have no idea at all. Yet premium under management is the single most important number in your business — it determines your commission income, your renewal stream, and ultimately, your enterprise value. The Book of Business Analytics dashboard in unLocked CRM tracks your total active premium across all carriers and product lines in real time, with breakdowns that reveal exactly where your revenue comes from and where it is headed. ## What Premium Under Management Means Premium under management (PUM) is the total annual premium on all active policies in your book of business. It represents the aggregate dollar amount of insurance coverage you service. For commission-based agents, PUM directly correlates with income: | Premium Under Management | Avg Commission Rate | Annual Commission Income | | --- | --- | --- | | $500,000 | 8% blended | $40,000 | | $1,000,000 | 8% blended | $80,000 | | $2,500,000 | 8% blended | $200,000 | | $5,000,000 | 8% blended | $400,000 | The "blended" rate reflects the mix of first-year and renewal commissions across product lines. Life insurance first-year commissions may pay 80–110%, while Medicare renewal commissions pay 2–5%. Your actual blended rate depends on your product mix. ## PUM Breakdowns The BOB Analytics dashboard breaks premium under management into four dimensions: ### By Product Line See how your premium is distributed across product types: - **Life Insurance** — term, whole life, IUL, variable life - **Annuities** — fixed, indexed, variable, MYGA - **Medicare** — Advantage, Supplement, Part D - **ACA / Health** — individual, family, SHOP - **Ancillary** — dental, vision, disability, supplemental This breakdown reveals your product concentration. If 70% of your premium is in one product line, you are vulnerable to market shifts, regulatory changes, or carrier decisions that affect that product. ### By Carrier Premium distribution across carriers shows your carrier concentration: - Which carriers hold the largest share of your book - How dependent you are on any single carrier's commission schedule - Where diversification opportunities exist The dashboard flags carriers that exceed a configurable concentration threshold (default: 40% of total premium), alerting you to concentration risk before it becomes a problem. ### By Time Period Trend views show how your PUM is changing: - **Monthly** — granular view for recent trends - **Quarterly** — smooths out seasonal variation - **Annual** — long-term trajectory of your book's growth A growing PUM indicates healthy new business production outpacing lapses. A declining PUM signals a retention problem, a production slowdown, or both. ### New Business vs. Renewal Understanding the composition of your premium is critical: - **First-year premium** — new business written this period - **Renewal premium** — existing business that renewed A healthy book has a growing base of renewal premium supplemented by consistent new business. If your first-year premium is high but renewal premium is declining, you have a retention problem — you are replacing clients as fast as you lose them, which is unsustainable. ## Using PUM for Business Planning ### Revenue Forecasting PUM is the foundation of revenue forecasting. By applying your average commission rates to your current PUM and projected growth rate, you can forecast income: - **Current PUM × blended renewal rate = projected renewal income** - **Target new business premium × first-year rate = projected new business income** - **Total projected income = renewal + new business - expected lapses** ### Valuation If you ever sell your book, PUM is the primary valuation metric. Insurance books typically sell for 1.5–2.5x annual renewal commissions: | PUM | Annual Renewal Commission (5% avg) | Book Value (2x) | | --- | --- | --- | | $1,000,000 | $50,000 | $100,000 | | $3,000,000 | $150,000 | $300,000 | | $5,000,000 | $250,000 | $500,000 | Tracking PUM over time builds a documented growth record that supports higher valuations when you are ready to sell. ### Goal Setting PUM provides a concrete metric for growth goals: - "Grow total PUM by $500,000 this year" - "Add $200,000 in life insurance premium" - "Reduce Medicare concentration from 60% to 45%" These are measurable, trackable goals tied directly to revenue outcomes. ## Real-Time Tracking vs. Annual Estimates Most agents calculate PUM once a year — if at all. They pull a book of business report from each carrier, add up the numbers in a spreadsheet, and arrive at a rough estimate that is outdated within weeks. BOB Analytics tracks PUM in real time using data from Commission+ (332 carrier feeds that sync daily). Every new policy, every lapse, and every renewal is reflected automatically. You always know your current PUM without manual calculation. This real-time visibility creates opportunities for proactive management: - **Spot a declining trend early** — before it becomes a quarterly surprise - **See the impact of a carrier decision immediately** — if a carrier increases rates and clients lapse, the PUM impact is visible within days - **Track campaign effectiveness** — correlate marketing spend with PUM growth ## FAQ ### How is PUM different from production? Production typically refers to new business written in a period. PUM includes all active premium — both new business and renewals. Production adds to PUM; lapses subtract from it. PUM is the cumulative result of your production minus your attrition over your entire career. ### Does PUM include pending applications? By default, PUM only includes issued, in-force policies. Pending applications are tracked separately in the application pipeline. You can optionally include pending premium in a "projected PUM" view. ### How often is PUM updated? PUM updates daily through Commission+ carrier sync. Policy additions, lapses, and premium changes are reflected within 24 hours of the carrier processing them. ### Can I see PUM per agent in my agency? Yes. Agency owners and managers can view PUM at the team level, per agent, or per office — with full drill-down capability into individual books. ### Is PUM the same as AUM (assets under management)? No. AUM refers to investment assets managed (common in annuity and wealth management contexts). PUM refers to insurance premium — the annual cost of coverage across your book. For annuity agents, both metrics are relevant but measure different things. ## FAQ ### undefined ### undefined ### undefined ## Related - https://unlockedcrm.ai/blog/book-of-business-analytics-insurance-agents - https://unlockedcrm.ai/blog/carrier-concentration-risk-insurance - https://unlockedcrm.ai/blog/insurance-retention-rate-tracking - https://unlockedcrm.ai/blog/revenue-at-risk-client-lifetime-value - https://unlockedcrm.ai/blog/insurance-customer-lifetime-value --- Source: [Premium Under Management: The Single Most Important Number in Your Insurance Book](https://unlockedcrm.ai/blog/premium-under-management-insurance-agents) — unLocked CRM, the AI CRM built for insurance agents. Citation permitted with attribution and a link to https://unlockedcrm.ai/blog/premium-under-management-insurance-agents.