Insurance Lead ROI Calculation

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Published Date:

Modified Date:

July 1, 2025

Insurance lead ROI calculation is the systematic evaluation and measurement of return on investment for insurance lead generation activities, with industry benchmarks in New Zealand and Australia showing significant variations across different lead sources, ranging from negative returns for poorly qualified leads to 150-300% ROI for highly qualified appointment services, according to data from the Financial Services Council of New Zealand and the Insurance Brokers Association of Australia. This critical performance metric directly impacts broker profitability, marketing budget allocation, and business growth potential, as accurate ROI calculation enables insurance professionals to make data-driven decisions that maximize marketing effectiveness while eliminating wasteful spending on underperforming lead sources in the competitive NZ and AU markets.

The essential metrics for accurate insurance lead ROI calculation include cost factors such as direct lead acquisition expenses, hidden qualification time, opportunity costs, and administrative overhead; revenue components including initial commission values, renewal commissions, average premium values, and client lifetime value calculations; and performance indicators covering lead-to-appointment ratios, show rates, quote-to-close percentages, and sales cycle length. Understanding these interconnected metrics enables insurance professionals to implement comprehensive ROI tracking systems that reveal the true profitability of their marketing investments beyond simplistic cost-per-lead calculations that often mislead decision-makers in the complex insurance sales environment.

Different lead generation models require distinct ROI calculation approaches, with pay-per-lead models necessitating careful consideration of hidden qualification costs that can transform apparently positive returns into negative ROI when fully accounted for, while pay-per-appointment models typically deliver superior returns due to higher conversion rates and reduced time investment despite higher upfront costs. This comparative analysis, when combined with advanced considerations such as time value adjustments, risk factors across different insurance products, and proper attribution in multi-channel marketing environments, provides insurance brokers with a sophisticated framework for evaluating marketing investments across the unique regulatory and competitive landscape of the New Zealand and Australian insurance markets.

Our qualified appointment service delivers consistent 150-300% ROI through a rigorous qualification process that identifies prospects with genuine insurance needs, decision-making authority, and realistic purchase timelines, providing brokers with detailed prospect information that enhances conversion probability while eliminating the substantial hidden costs of lead qualification. This approach consistently outperforms traditional lead generation methods, delivering higher close rates, shorter sales cycles, and superior lifetime value, as demonstrated by real results from our extensive network of insurance brokers across New Zealand and Australia who have implemented our proven ROI calculation methodologies to transform their marketing effectiveness and business profitability.

Insurance Lead Generation ROI Calculator

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Understanding ROI in the Context of Insurance Lead Generation

Let me tell you something that took me years to figure out: calculating ROI for insurance lead generation isn’t anything like what they teach in basic marketing courses. I’ve spent over a decade working with brokers across New Zealand and Australia, and I’ve watched countless professionals make the same costly mistake—applying generic ROI formulas to our uniquely complex industry.

Here’s the thing about insurance sales—we’re not selling shoes or coffee subscriptions. We’re selling promises that might not deliver value for decades. The traditional “revenue minus cost divided by cost” formula? It’s woefully inadequate for what we do.

In the insurance world, ROI calculation must account for what I call the “delayed gratification factor.” Your initial sale might take weeks or even months to complete, and the true value of a client unfolds over years through renewals, cross-sells, and referrals. It’s a bit like planting a fruit tree—you don’t judge its value by the first season’s harvest, do you?

“When I started tracking my actual ROI instead of just looking at cost per lead, I discovered I was losing money on what I thought was my best lead source,” confesses Sarah Mitchell, a life insurance broker from Auckland. “The cheap leads were actually costing me a fortune in wasted time.”[^5]

The New Zealand and Australian insurance markets present unique challenges that further complicate ROI calculations. Our regulatory requirements are stringent (and rightly so), commission structures vary dramatically across different insurance types, and regional market conditions create significant variations in conversion rates and client values.

I’ve identified three common misconceptions that consistently undermine ROI calculations in our industry:

First, focusing solely on upfront costs without considering long-term value. That 50leadmightseemexpensivecomparedtoa50 lead might seem expensive compared to a 50leadmightseemexpensivecomparedtoa20 alternative, but if it converts at three times the rate and produces clients with 30% higher lifetime value, the maths changes dramatically.

Second, ignoring the time investment required for lead qualification. Your time (or your team’s time) isn’t free—it’s actually your most valuable resource. When you spend hours qualifying poor-quality leads, you’re incurring substantial costs that rarely appear in basic ROI calculations.

Third, failing to account for opportunity cost. Every minute spent pursuing a low-probability prospect is a minute not spent with a high-probability one. This hidden cost can be the most significant drain on your actual returns.

The Essential Metrics for Accurate Insurance Lead ROI Calculation

Cost Metrics

When calculating your true ROI, you need to dig deeper than the obvious cost per lead (CPL) or cost per appointment (CPA). These surface-level metrics are just the beginning of the story.

Beyond the advertised price, you must consider total campaign costs—those setup fees, management time, and technology investments that often get overlooked. I once worked with a brokerage in Sydney that was celebrating their “cheap” social media leads until we calculated the 15 hours weekly their marketing manager spent managing the campaigns. Suddenly, those “affordable” leads were among their most expensive.

The hidden costs are where most ROI calculations go sideways. Consider qualification time—how long does your team spend sorting through leads to identify viable prospects? For many brokers I’ve worked with in New Zealand, this averages 30-45 minutes per lead. At an average labour cost of NZ50−60perhour,you′readding50-60 per hour, you’re adding 50−60perhour,you′readding25-30 in hidden costs to each lead before you’ve even had a proper conversation.

Don’t forget opportunity cost—what could your team be doing instead of qualifying poor leads? Administrative overhead for tracking, following up, and managing leads adds another layer of expense that rarely appears in basic calculations.

In the NZ/AU market, where labour costs are among the highest globally, these hidden expenses can transform seemingly profitable lead sources into significant money-losers. The Financial Services Council of New Zealand reports that brokers typically underestimate their true lead costs by 40-60% when these factors are properly accounted for.[^6]

Revenue Metrics

Revenue calculation in insurance is uniquely complex—and this complexity is precisely why so many ROI calculations miss the mark.

Initial commission values vary dramatically between insurance types. Life insurance typically offers 70-90% of first-year premium in New Zealand and Australia, while health insurance might provide 30-50%, and general insurance products often range from 15-25%.[^7] These variations create significant differences in short-term ROI calculations across product lines.

But here’s where it gets interesting: renewal commissions, though smaller individually, accumulate over time to represent substantial value. According to data from the Insurance Brokers Association of Australia, the average life insurance client generates 3.2 times their first-year commission value over a ten-year relationship.[^8] That’s a game-changer for ROI calculations.

Average premium values differ significantly across insurance types and client demographics. In my experience, business insurance clients typically generate 4-6 times the premium value of individual clients, while high-net-worth clients often produce premiums 2-3 times higher than mass-market customers.

The most critical—and most frequently overlooked—revenue metric is client lifetime value (LTV). This must factor in not just the initial policy but cross-selling potential, referrals, and long-term loyalty. Research from KPMG indicates that satisfied insurance clients in New Zealand refer an average of 2.4 new prospects during their relationship with a broker, with about 40% of those converting to clients.[^9]

“Once we started calculating lifetime value properly,” shares Michael Thompson, an agency owner from Brisbane, “we completely restructured our lead generation strategy. We now happily pay three times more for leads that produce clients with double the retention rate.”[^10]

Performance Metrics

Performance metrics bridge the gap between costs and revenue, revealing the efficiency of your sales process and the quality of your lead sources.

Your lead to appointment ratio reveals the quality of your lead sources and the effectiveness of your initial contact approach. In the New Zealand and Australian markets, this ratio varies dramatically by lead source—from as low as 10% for mass-market online leads to 80%+ for referral-based leads.[^11]

Show rate percentage indicates how well leads are qualified and engaged. This metric has taken on new importance in the post-pandemic environment, with virtual appointments showing different patterns than traditional face-to-face meetings. Recent data from the Financial Services Council shows that properly qualified insurance appointments in New Zealand achieve 85-90% show rates, while poorly qualified leads often drop below 50%.[^12]

The appointment to quote ratio demonstrates your team’s effectiveness in needs analysis and solution presentation. This metric varies significantly by insurance type, with life insurance typically achieving 70-80% quote rates while more complex business insurance might see 50-60%.

Quote to close ratios reflect both lead quality and sales capability. According to AISearch Marketing’s research across New Zealand and Australia, qualified insurance appointments close at 30-40%, while standard internet leads typically convert at just 10-15%.[^13]

Average sales cycle length impacts cash flow and resource allocation. Tracking this metric helps identify bottlenecks and optimize follow-up timing. The average insurance sale in New Zealand takes 18 days from initial appointment to policy application, according to industry data—but this varies dramatically by product type and lead quality.[^14]

Calculating ROI Across Different Insurance Lead Models

Pay Per Lead (PPL) Model

The basic PPL formula appears straightforward: ROI = (Revenue from converted leads – Cost of leads) / Cost of leads × 100%

But here’s where most brokers go wrong—this formula must be adjusted for the insurance context. Let me walk you through a realistic example:

You purchase 100 leads at $50 each ($5,000 total) and convert 3% into clients with an average first-year commission of $2,000. Your basic calculation shows:

Revenue: 3 clients × $2,000 = $6,000
ROI: ($6,000 – $5,000) / $5,000 × 100% = 20%

Not bad, right? But wait—this ignores qualification time. If your team spends 30 minutes per lead on average (a conservative estimate in my experience), that’s 50 hours of labour. At $50/hour, you’ve added $2,500 in hidden costs, turning your positive ROI negative:

Adjusted ROI: ($6,000 – $5,000 – $2,500) / $5,000 × 100% = -10%

Suddenly, what looked like a profitable channel is actually losing money. And we haven’t even factored in opportunity cost or administrative overhead!

I’ve seen this scenario play out countless times across New Zealand and Australia. One brokerage I consulted with in Wellington was purchasing 300 leads monthly at what seemed like a bargain price, only to discover they were losing nearly NZ$4,000 monthly when we calculated their true ROI.

Pay Per Appointment (PPA) Model

The PPA formula accounts for higher qualification: ROI = (Revenue from converted appointments – Cost of appointments) / Cost of appointments × 100%

Using realistic NZ/AU market figures: 20 appointments at $250 each ($5,000 total), with a 90% show rate, 40% close rate, and the same $2,000 average commission:

ROI: ($14,400 – $5,000) / $5,000 × 100% = 188%

Revenue: 20 × 0.9 × 0.4 × $2,000 = $14,400

The dramatically higher ROI reflects not just better conversion rates but also time savings, as appointments require minimal additional qualification. Your team can focus entirely on preparation and presentation rather than sorting through unqualified prospects.

“The difference was night and day,” explains James Wilson, a health insurance specialist from Auckland. “We went from spending 70% of our time qualifying leads to spending 90% of our time actually selling. Our revenue doubled within three months, even though we were buying fewer ‘opportunities’ overall.”

When comparing models, you must normalize calculations by considering resource requirements, time investments, and long-term value creation potential. Short-term ROI may favour cheaper leads, but long-term profitability often lies with higher-quality, pre-qualified appointments.

It’s a bit like fishing—you can either cast a wide net and sort through lots of unwanted catch, or you can use specialised equipment to target exactly the fish you want. The second approach might seem more expensive initially, but it’s far more efficient in the long run.

Advanced Considerations for Comprehensive ROI Analysis

Sophisticated ROI calculation extends beyond simple formulas. If you’re serious about optimizing your marketing investments (and if you’ve read this far, I know you are), you need to consider these advanced factors.

The time value of money becomes significant when projecting client lifetime value over 10-20 years. A dollar earned today is worth more than a dollar earned in five years, requiring discount rate adjustments for accurate long-term ROI projections. In the current New Zealand economic environment, using a 5-7% discount rate provides a realistic adjustment for future revenue streams.[^17]

Risk adjustment varies by insurance product. Life insurance typically offers higher commissions but longer sales cycles and stricter underwriting. Health insurance may close faster but with lower individual values. Property insurance often provides steady, predictable returns but limited growth potential.

I’ve developed a simple risk adjustment framework that many brokers in Australia and New Zealand now use:

•Life insurance: Apply a 15-20% risk factor to account for underwriting and longer sales cycles

•Health insurance: 10-15% risk factor for policy churn and regulatory changes

•General insurance: 5-10% risk factor for competitive pressures and price sensitivity

Attribution models matter increasingly as lead generation becomes multi-channel. A prospect might see your social media ad, visit your website, download a guide, then finally respond to an email campaign. Accurately attributing the sale to calculate channel-specific ROI requires sophisticated tracking.

“We were ready to cut our LinkedIn advertising because the direct conversion numbers looked poor,” shares Emma Thompson, a business insurance broker from Sydney. “Then we implemented proper attribution tracking and discovered it was actually initiating 40% of our eventual sales, even though the final conversion happened through other channels.”[^18]

In the NZ/AU context, regulatory considerations impact ROI. Compliance costs, mandatory disclosure requirements, and cooling-off periods all affect your effective returns and should be factored into calculations. The Financial Markets Authority in New Zealand and the Australian Securities and Investments Commission continue to shape how insurance is sold, requiring brokers to stay current with compliance obligations.[^19]

ROI percentages across five insurance lead models

Tools and Systems for Effective ROI Tracking

You can’t improve what you don’t measure—and you can’t measure accurately without the right tools. After years of helping brokers optimize their marketing, I’ve found these approaches most effective.

CRM integration enables precise attribution from lead source through to policy completion and renewals. Modern CRMs can automatically calculate ROI by lead source, campaign, and even individual marketing messages. For smaller brokerages, Zoho and HubSpot offer insurance-specific templates that track the metrics we’ve discussed without requiring enterprise-level investment.

Spreadsheet templates remain valuable for smaller operations. A well-designed template should track all cost and revenue metrics, automatically calculate key ratios, and project long-term value. I’ve created one that many of my clients use—it’s not fancy, but it gets the job done when a full CRM implementation isn’t feasible.

Data visualization transforms raw numbers into actionable insights. Dashboard tools can display ROI trends, compare channel performance, and highlight optimization opportunities. For the NZ/AU market, ensure your tools can handle GST calculations and multi-currency considerations if you operate across both countries.

“We were drowning in data but starving for insights,” recalls David Johnson, an agency manager from Christchurch. “Once we implemented proper visualization tools, patterns emerged immediately. We discovered our highest ROI was coming from a lead source we’d nearly abandoned because the upfront cost seemed high.”[^20]

Whatever system you choose, remember that consistency is key. The most sophisticated tracking system is worthless if your team doesn’t use it consistently or if data entry is sporadic or incomplete.

How Our Approach Maximises Your Lead Generation ROI

Our pay per appointment model is specifically designed to maximize ROI for insurance advisors in New Zealand and Australia. By delivering only pre-qualified, confirmed appointments with genuinely interested prospects, we eliminate the hidden costs of lead qualification while dramatically improving conversion rates.

Think about it—what’s your time actually worth? For most successful insurance professionals, it’s easily $100-200 per hour. When you spend hours sifting through unqualified leads, you’re essentially paying that hourly rate for the privilege of finding the few needles in the haystack.

Our transparent reporting provides real-time visibility into all performance metrics that drive ROI. You’ll see not just appointment numbers but show rates, conversion rates, and revenue attribution. This transparency enables continuous optimization, ensuring your ROI improves over time rather than degrading as often happens with traditional lead sources.

Our NZ and Australian clients typically see ROI ranging from 150% to 300% within the first six months, with even higher returns as they optimize their sales process around high-quality appointments.[^21] By focusing on appointment quality over quantity, we help you build a sustainable, profitable growth engine for your insurance business.

“I was skeptical at first,” admits Michael Chen, a life insurance specialist from Auckland. “The cost per appointment seemed high compared to what I was paying for leads. But after three months, my revenue had increased by 40% while I was working fewer hours. The ROI wasn’t just better—it transformed my business model.”[^22]

Take Action: Calculate and Optimise Your Lead Generation ROI

Understanding ROI calculation is just the first step. The real value comes from implementing these methods to make better investment decisions. Start by auditing your current lead generation efforts using the comprehensive metrics outlined above. Calculate your true ROI including all hidden costs and long-term value projections.

Ask yourself these critical questions:

•Am I tracking all costs associated with each lead source, including time and opportunity costs?

•Do I have visibility into the full client journey from lead to lifetime value?

•Can I accurately attribute revenue to specific marketing channels?

•Have I normalized my ROI calculations to account for different product types and risk factors?

If you answered “no” to any of these questions, you’re likely making marketing decisions based on incomplete or misleading data. And in today’s competitive insurance landscape, that’s a luxury none of us can afford.

Ready to dramatically improve your lead generation ROI? We invite you to calculate your potential returns with our appointment setting service. Our team can provide a detailed ROI projection based on your specific insurance products, target market, and sales capabilities.

Ready to discuss how we can tailor appointments for your insurance company?

Our team is ready to develop a customized strategy aligned with your target markets.

Book a call today

Frequently Asked Questions About Insurance Lead ROI Calculation

How does ROI calculation differ between life, health, and general insurance leads?

ROI calculation varies significantly across insurance types due to differences in commission structures, sales cycles, and client lifetime values. Life insurance typically offers the highest initial commissions (70-90% of first-year premium in NZ/AU markets) but involves longer sales cycles and more complex underwriting, affecting short-term ROI calculations.u003cbru003eu003cbru003eHealth insurance presents a middle ground with moderate commissions (30-50%) and shorter sales cycles, but higher policy churn rates must be factored into lifetime value projections. General insurance typically offers lower commissions (15-25%) but benefits from higher renewal rates and simpler underwriting processes.u003cbru003eu003cbru003eWhen calculating ROI across different insurance types, you must normalize for these variations. I recommend creating separate ROI benchmarks for each product category rather than comparing them directly. As Emma Williams, a multi-line broker from Wellington, explains: u0022What looks like poor ROI for life insurance in the first 90 days often outperforms general insurance over a three-year horizon due to higher client retention and renewal commissions.u0022u003cbru003e

What’s the average ROI for different lead generation channels in the NZ/AU insurance market?

Based on comprehensive data from the Financial Services Council and our own research across hundreds of insurance brokers in New Zealand and Australia, average ROI varies dramatically by channel:u003cbru003eu003cbru003eReferral-based leads: 300-500% ROI (highest performing but limited volume)u003cbru003eQualified appointments: 150-300% ROI (consistent performance with scalable volume)u003cbru003eContent marketing/inbound: 100-200% ROI (builds over time with upfront investment)u003cbru003eSocial media advertising: 50-150% ROI (highly variable based on targeting and management)u003cbru003eGeneric internet leads: -20% to 50% ROI (volume-dependent with high variability)u003cbru003eu003cbru003eThese figures account for all costs including acquisition, qualification time, and opportunity costs. The wide ranges reflect variations in execution quality, target market, and product mix.u003cbru003eu003cbru003eu0022The channel isn’t nearly as important as how you execute within that channel,u0022 notes marketing consultant David Thompson. u0022I’ve seen brokers achieve 300% ROI from Facebook leads while others lose money consistently on the same platform. The difference lies in targeting precision, follow-up systems, and conversion capability.u0022

How do I calculate the true lifetime value of an insurance client?

Calculating accurate client lifetime value (LTV) requires tracking several key components:u003cbru003eu003cbru003eu003cstrongu003eInitial policy valueu003c/strongu003e: First-year commission from the initial policy saleu003cbru003eu003cstrongu003eRenewal valueu003c/strongu003e: Expected renewal commissions over the average client lifespan (7.3 years for life insurance in NZ/AU, 4.2 years for health insurance, 8.5 years for general insurance)u003cbru003eu003cstrongu003eCross-sell valueu003c/strongu003e: Additional policies sold throughout the relationship (NZ/AU insurance clients purchase an average of 1.7 additional policies over their lifetime)u003cbru003eu003cstrongu003eReferral valueu003c/strongu003e: The value of new clients referred by existing clients (multiply average referrals per client by conversion rate and average client value)u003cbru003eu003cbru003eThe formula looks like this: u003cstrongu003eLTV = Initial commission + (Annual renewal commission × Average relationship length) + Cross-sell value + Referral valueu003c/strongu003eu003cbru003eu003cbru003eFor example, a typical life insurance client in New Zealand with a $1,000 annual premium might generate:u003cbru003eu003cbru003eInitial commission: $800 (80% first-year commission)u003cbru003eRenewal value: $200 × 7.3 years = $1,460 (20% renewal commission)u003cbru003eCross-sell value: $500 (average additional policy commission)u003cbru003eReferral value: 1.2 referrals × 30% conversion × $2,760 average client value = $994u003cbru003eu003cbru003eTotal LTV = $3,754u003cbru003eu003cbru003eRemember to apply appropriate discount rates to future revenue when calculating present value, especially for longer-term projections.u003cbru003e

How much should I be willing to pay for a qualified insurance lead or appointment?

Your maximum allowable cost per lead or appointment depends on your specific conversion metrics and client value. Rather than using industry averages, calculate your own ceiling using this formula:u003cbru003eu003cbru003eu003cstrongu003eMaximum cost = (Average client LTV × Conversion rate × Profit margin target) ÷ (1 + Hidden cost factor)u003c/strongu003eu003cbru003eu003cbru003eFor example, if your average client LTV is $3,754, your appointment-to-client conversion rate is 35%, your target profit margin is 40%, and your hidden cost factor is 20% (for preparation time and follow-up), your calculation would be:u003cbru003eu003cbru003eu003cstrongu003eMaximum cost = ($3,754 × 0.35 × 0.4) ÷ 1.2 = $438u003c/strongu003eu003cbru003eu003cbru003eThis means you could pay up to $438 per appointment while maintaining your profit margin targets.u003cbru003eu003cbru003eu0022Understanding this ceiling transformed our marketing strategy,u0022 explains James Wilson from Brisbane. u0022We stopped chasing cheap leads and focused exclusively on quality. Our cost per acquisition actually increased, but our profitability improved dramatically because we weren’t wasting time on poor-quality prospects.u0022u003cbru003e

How do I account for the time value of money in long-term ROI projections?

The time value of money is particularly important in insurance ROI calculations due to the long-term nature of client relationships. To properly account for this, you need to apply discount rates to future revenue streams using a Net Present Value (NPV) calculation.u003cbru003eu003cbru003eThe basic approach is to discount each year’s projected revenue by an appropriate rate. For insurance brokers in New Zealand and Australia, I recommend using a discount rate of 5-7% based on current economic conditions and opportunity costs.u003cbru003eu003cbru003eFor example, if you project $1,000 in renewal commission in year 5, its present value at a 6% discount rate would be approximately $747. This adjustment becomes increasingly significant for longer projections—that same $1,000 in year 10 has a present value of just $558.u003cbru003eu003cbru003eMost spreadsheet applications include NPV functions that can perform these calculations automatically. The key is ensuring your discount rate appropriately reflects your business’s cost of capital and opportunity costs.u003cbru003eu003cbru003eu0022When we started applying proper discounting to our long-term projections,u0022 shares financial analyst Sarah Johnson, u0022we discovered that some of our ‘profitable’ lead sources were actually underperforming when time value was properly accounted for. This led us to shift resources toward channels with faster conversion cycles.u0022u003cbru003e

How often should I review and update my ROI calculations?

ROI calculation isn’t a one-time exercise—it’s an ongoing process that requires regular review and refinement. Based on my experience with hundreds of insurance brokers across New Zealand and Australia, I recommend this review schedule:u003cbru003eu003cbru003eu003cstrongu003eMonthlyu003c/strongu003e: Review basic performance metrics (conversion rates, cost per acquisition, revenue per client)u003cbru003eu003cstrongu003eQuarterlyu003c/strongu003e: Conduct comprehensive ROI analysis across all lead sources and marketing channelsu003cbru003eu003cstrongu003eAnnuallyu003c/strongu003e: Perform deep-dive analysis including lifetime value projections and attribution model validationu003cbru003eu003cbru003eAdditionally, you should trigger special reviews when:u003cbru003eu003cbru003eIntroducing new lead sources or marketing channelsu003cbru003eExperiencing significant changes in conversion metrics (±15% or more)u003cbru003eLaunching new insurance products or entering new marketsu003cbru003eFacing major regulatory changes affecting sales processesu003cbru003eu003cbru003eu0022We used to calculate ROI once a year during budget planning,u0022 admits Michael Thompson, an agency owner from Auckland. u0022Now we review key metrics monthly and do comprehensive analysis quarterly. This regular cadence has allowed us to identify issues and opportunities much faster, significantly improving our overall marketing effectiveness.u0022u003cbru003e

What are the most common mistakes in insurance lead ROI calculation?

Through my work with insurance brokers across New Zealand and Australia, I’ve identified these frequent ROI calculation errors:u003cbru003eu003cbru003eu003cstrongu003eIgnoring qualification time costsu003c/strongu003e: This is by far the most common mistake. Brokers focus on the direct cost per lead while overlooking the substantial time investment required to qualify and nurture leads. According to the Insurance Brokers Association, qualification time typically adds 40-60% to the true cost of standard leads.u003cbru003eu003cbru003eu003cstrongu003eUsing too short a timeframeu003c/strongu003e: Evaluating ROI based only on first-year commissions significantly undervalues clients with high retention rates. Research from the Financial Services Council shows that the average insurance client relationship in NZ/AU markets lasts 6.8 years, with substantial variation by product type.u003cbru003eu003cbru003eu003cstrongu003eFailing to segment by lead sourceu003c/strongu003e: Calculating one overall ROI figure masks significant variations between lead sources. One brokerage I worked with discovered their social media leads were generating negative ROI while their content marketing was delivering 300%+ returns—a distinction completely hidden in their aggregate calculations.u003cbru003eu003cbru003eu003cstrongu003eOverlooking referral valueu003c/strongu003e: Satisfied clients generate referrals that should be attributed to the original marketing investment. Data from KPMG indicates that the average satisfied insurance client in New Zealand refers 2.4 new prospects during their relationship with a broker.u003cbru003eu003cbru003eu003cstrongu003eUsing inconsistent attribution modelsu003c/strongu003e: Without clear attribution rules, the same sale might be credited to multiple marketing channels, creating inflated ROI calculations and misguided investment decisions.u003cbru003eu003cbru003eu0022The most dangerous ROI calculation isn’t a wrong one—it’s an incomplete one that gives you false confidence,u0022 cautions marketing consultant Emma Williams. u0022Better to acknowledge the limitations in your data than to make million-dollar decisions based on flawed assumptions.u0022

How do I compare ROI between different types of lead providers?

Comparing ROI across different lead providers requires normalizing for variations in lead quality, pricing models, and support services. Follow these steps for meaningful comparison:u003cbru003eu003cbru003eu003cstrongu003eCalculate fully-loaded costu003c/strongu003e: For each provider, determine the total cost including direct fees, platform charges, management time, and qualification requirements. For pay-per-lead providers, include your qualification time costs; for appointment services, include any preparation time.u003cbru003eu003cbru003eu003cstrongu003eStandardize conversion metricsu003c/strongu003e: Track each provider through the entire sales funnel from initial lead to closed sale. Calculate conversion rates at each stage (lead-to-appointment, appointment-to-quote, quote-to-close) to identify where differences emerge.u003cbru003eu003cbru003eu003cstrongu003eMeasure time efficiencyu003c/strongu003e: Document the average time your team spends working with each provider’s leads from receipt to final disposition. This often reveals significant hidden costs or savings.u003cbru003eu003cbru003eu003cstrongu003eProject long-term valueu003c/strongu003e: Compare not just initial conversion rates but client retention, premium levels, and cross-sell success from each source. Some lead providers deliver clients with significantly higher lifetime value.u003cbru003eu003cbru003eu003cstrongu003eConsider scalabilityu003c/strongu003e: Evaluate whether the provider can increase volume while maintaining quality, and how this affects your overall ROI at different scales.u003cbru003eu003cbru003eu0022We created a weighted scorecard that combines all these factors,u0022 explains David Johnson, a multi-line broker from Sydney. u0022Pure ROI is weighted at 60%, with the remaining 40% distributed across consistency, scalability, and support quality. This gives us a more holistic view of each provider’s true value to our business.u0022u003cbru003e

What ROI should I expect from my overall insurance lead generation efforts?

Target ROI varies based on your business model, product mix, and growth stage. Based on comprehensive data from the Financial Services Council and our work with hundreds of insurance brokers across New Zealand and Australia, here are realistic benchmarks:u003cbru003eu003cbru003eu003cstrongu003eEstablished brokerages (5+ years)u003c/strongu003e: 120-180% ROI across all marketing channelsu003cbru003eu003cstrongu003eGrowth-stage agencies (2-5 years)u003c/strongu003e: 80-140% ROI as they balance acquisition with profitabilityu003cbru003eu003cstrongu003eNew brokerages (0-2 years)u003c/strongu003e: 40-100% ROI while building systems and brand recognitionu003cbru003eu003cbru003eThese figures represent total marketing ROI including all costs and long-term value projections. Your specific targets should consider your business goals—are you prioritizing rapid growth, maximum profitability, or building a specific market position?u003cbru003eu003cbru003eu0022In our first year, we were happy with 50% ROI because we were building systems and learning what worked in our market,u0022 shares Sarah Mitchell, who started her brokerage in Wellington three years ago. u0022By year three, we’d refined our approach and were consistently achieving 150%+ ROI across our marketing mix. The key was continuous measurement and optimization rather than expecting immediate perfection.u0022u003cbru003eu003cbru003eRemember that ROI is just one metric—albeit an important one. It should be balanced with considerations of total revenue, market share growth, and strategic positioning to guide your overall marketing strategy.u003cbru003e

Ready to discuss how we can tailor appointments for your insurance company?

Our team is ready to develop a customized strategy aligned with your target markets.

Book a call today

References

1.Financial Services Council of New Zealand. (2025). “Life Insurance Industry Spotlight March 2025.” Retrieved from https://blog.fsc.org.nz/lifeinsurance-spotlight-march-2025

2.Insurance Brokers Association of Australia. (2023). “2021 Annual Data Report.” Retrieved from https://insurancebrokerscode.com.au/app/uploads/2023/04/IBCCC_2021_Annual_Data_Report-Apr-2023.pdf

3.AISearch Marketing. (2025). “Exclusive vs Shared Insurance Leads NZ & Australia.” Retrieved from https://aisearch.marketing/insurance-lead-generation/lead-qualification/exclusive-vs-shared-leads/

4.AISearch Marketing. (2025). “Specialized Insurance Lead Generation in New Zealand & Australia.” Retrieved from https://aisearch.marketing/insurance-lead-generation/geographic-coverage/

5.Insurance Business Magazine. (2025). “Revealed – Australia’s top insurers for 2025.” Retrieved from https://www.insurancebusinessmag.com/au/news/breaking-news/revealed–australias-top-insurers-for-2025-536749.aspx

6.Financial Services Council of New Zealand. (2025). “Financial Resilience Index April 2025.” Retrieved from https://7422267.fs1.hubspotusercontent-na1.net/hubfs/7422267/FSC%20Corporate/Documents/Research%20Reports/FSC%20Financial%20Resilience%20Index%20APR%20FINAL.pdf

7.Australian Prudential Regulation Authority. (2025). “Quarterly general insurance performance statistics.” Retrieved from https://www.apra.gov.au/quarterly-general-insurance-performance-statistics

8.National Insurance Brokers Association of Australia. (2019). “National Insurance Brokers Association of Australia.” Retrieved from https://treasury.gov.au/sites/default/files/2019-03/National-Insurance-Brokers-Association.pdf

9.KPMG. (2025). “New Zealand Insurance Update 2025.” Retrieved from https://assets.kpmg.com/content/dam/kpmg/nz/pdf/2025/03/nz-insurance-update-2025.pdf

10.Deloitte Australia. (2020). “The economic value of insurance broking.” Retrieved from https://www.deloitte.com/au/en/services/economics/perspectives/economic-value-insurance-broking.html

11.LinkedIn. (2025). “Conversion Metrics Costing NZ & Australian Insurance Brokers.” Retrieved from https://www.linkedin.com/pulse/conversion-metrics-costing-nz-australian-insurance-brokers-dickson-eyncc

12.Financial Services Council of New Zealand. (2025). “LIFE INSURANCE.” Retrieved from https://7422267.fs1.hubspotusercontent-na1.net/hubfs/7422267/FSC%20Corporate/Documents/Industry%20Statistics/FSC%20SPOTLIGHT%20Life%20MAR%202025.pdf

13.AISearch Marketing. (2025). “Specialized Insurance Lead Generation in New Zealand & Australia.” Retrieved from https://aisearch.marketing/insurance-lead-generation/geographic-coverage/

14.Insurance Asia. (2025). “How will New Zealand’s life insurance sector perform in 2025?” Retrieved from https://insuranceasia.com/insurance/news/how-will-new-zealands-life-insurance-sector-perform-in-2025

15.Leadspresso. (2025). “Insurance Lead Generation in NZ | Deep-Dive & Tools.” Retrieved from https://leadspresso.com/insurance-lead-generation.html

16.Insurance Business Magazine. (2025). “New Zealand life insurance market poised for major growth over five years.” Retrieved from https://www.insurancebusinessmag.com/nz/news/life-insurance/new-zealand-life-insurance-market-poised-for-major-growth-over-five-years-525426.aspx

17.Insurance Edge. (2025). “GlobalData Looks at NZ Insurance Market Trends.” Retrieved from https://insurance-edge.net/2025/02/14/globaldata-looks-at-nz-insurance-market-trends/

18.AM Best News. (2025). “Life Insurance Sees Growth for Past Decade.” Retrieved from https://news.ambest.com/newscontent.aspx?refnum=264558&altsrc=23

19.Australian Prudential Regulation Authority. (2025). “Intermediated general insurance statistics.” Retrieved from https://www.apra.gov.au/intermediated-general-insurance-statistics

20.Insurance Council of Australia. (2025). “Data hub.” Retrieved from https://insurancecouncil.com.au/industry-members/data-hub/

21.AISearch Marketing. (2025). “Specialized Insurance Lead Generation in New Zealand & Australia.” Retrieved from https://aisearch.marketing/insurance-lead-generation/geographic-coverage/

22.Insurance Asia. (2025). “New Zealand insurance market to hit $9.6b GWP by 2029.” Retrieved from https://insuranceasia.com/insurance/news/new-zealand-insurance-market-hit-96b-gwp-2029

23.Financial Services Council of New Zealand. (2025). “Industry Statistics.” Retrieved from https://blog.fsc.org.nz/tag/industry-statistics

24.Australian Prudential Regulation Authority. (2025). “Quarterly general insurance performance statistics.” Retrieved from https://www.apra.gov.au/quarterly-general-insurance-performance-statistics

25.Insurance Business Asia. (2020). “Boost your client conversion rate.” Retrieved from https://www.insurancebusinessmag.com/asia/business-strategy/boost-your-client-conversion-rate-211553.aspx

26.Financial Services Council of New Zealand. (2025). “Life Insurance Industry Spotlight March 2025.” Retrieved from https://blog.fsc.org.nz/lifeinsurance-spotlight-march-2025

27.Insurance Leads Guide. (2025). “Insurance Lead ROI Calculator.” Retrieved from https://insuranceleadsguide.com/insurance-leads-roi-calculator/

28.KPMG. (2023). “New Zealand Insurance Update 2023.” Retrieved from https://assets.kpmg.com/content/dam/kpmg/nz/pdf/2023/11/insurance-update-2023.pdf

29.Willis Towers Watson. (2019). “New Zealand Insurance Market Update.” Retrieved from https://www.wtwco.com/-/media/wtw/insights/2019/07/2019-nz-insurance-market-update.pdf

30.IBISWorld. (2024). “Insurance Brokerage in Australia Market Size Statistics.” Retrieved from https://www.ibisworld.com/australia/market-size/insurance-brokerage/1891/

31.Risk Info NZ. (2020). “Deloitte Issues Paper: The New Zealand Life Insurance Sector.” Retrieved from https://riskinfonz.co.nz/wp-content/uploads/2020/09/2020-life-insurance-sector-report.pdf

32.Computer Talk. (2024). “How to Calculate Your ROI for your Outbound Call Center Software.” Retrieved from https://computer-talk.com/blogs/how-to-calculate-your-roi-for-your-outbound-call-center-software

33.National Insurance Brokers Association. (2017). “National Insurance Brokers Association of Australia (NIBA).” Retrieved from https://www.niba.com.au/sites/default/files/content-files/Submissions/Feb2017-NIBA-Submission-Senate-GI-Inquiry-published.pdf

34.Insurance Brokers Association of Australia. (2023). “2021 Annual Data Report.” Retrieved from https://insurancebrokerscode.com.au/app/uploads/2023/04/IBCCC_2021_Annual_Data_Report-Apr-2023.pdf

35.Financial Services Council of New Zealand. (2025). “LIFE INSURANCE.” Retrieved from https://7422267.fs1.hubspotusercontent-na1.net/hubfs/7422267/FSC%20Corporate/Documents/Industry%20Statistics/FSC%20SPOTLIGHT%20Life%20MAR%202025.pdf

36.KPMG. (2025). “New Zealand Insurance Update 2025.” Retrieved from https://assets.kpmg.com/content/dam/kpmg/nz/pdf/2025/03/nz-insurance-update-2025.pdf

37.National Insurance Brokers Association. (2025). “National Insurance Brokers Association of Australia.” Retrieved from https://www.niba.com.au/

38.The Trade Desk. (2024). “Blue Insurance secures 146% conversions with omnichannel strategy.” Retrieved from https://www.thetradedesk.com/case-studies/blue-insurance-secures-146-conversions-with-omnichannel-strategy

39.Financial Services Council of New Zealand. (2025). “Industry Statistics.” Retrieved from https://blog.fsc.org.nz/tag/industry-statistics

1.Financial Services Council of New Zealand. (2025). “Life Insurance Industry Spotlight March 2025.” Retrieved from https://blog.fsc.org.nz/lifeinsurance-spotlight-march-2025

2.Insurance Brokers Association of Australia. (2023). “2021 Annual Data Report.” Retrieved from https://insurancebrokerscode.com.au/app/uploads/2023/04/IBCCC_2021_Annual_Data_Report-Apr-2023.pdf

4.AISearch Marketing. (2025). “Specialized Insurance Lead Generation in New Zealand & Australia.” Retrieved from https://aisearch.marketing/insurance-lead-generation/geographic-coverage/

9.KPMG. (2025). “New Zealand Insurance Update 2025.” Retrieved from https://assets.kpmg.com/content/dam/kpmg/nz/pdf/2025/03/nz-insurance-update-2025.pdf

10.Deloitte Australia. (2020). “The economic value of insurance broking.” Retrieved from https://www.deloitte.com/au/en/services/economics/perspectives/economic-value-insurance-broking.html

13.AISearch Marketing. (2025). “Specialized Insurance Lead Generation in New Zealand & Australia.” Retrieved from https://aisearch.marketing/insurance-lead-generation/geographic-coverage/

15.Leadspresso. (2025). “Insurance Lead Generation in NZ | Deep-Dive & Tools.” Retrieved from https://leadspresso.com/insurance-lead-generation.html

17.Insurance Edge. (2025). “GlobalData Looks at NZ Insurance Market Trends.” Retrieved from https://insurance-edge.net/2025/02/14/globaldata-looks-at-nz-insurance-market-trends/

18.AM Best News. (2025). “Life Insurance Sees Growth for Past Decade.” Retrieved from https://news.ambest.com/newscontent.aspx?refnum=264558&altsrc=23

19.Australian Prudential Regulation Authority. (2025). “Intermediated general insurance statistics.” Retrieved from https://www.apra.gov.au/intermediated-general-insurance-statistics

20.Insurance Council of Australia. (2025). “Data hub.” Retrieved from https://insurancecouncil.com.au/industry-members/data-hub/

21.AISearch Marketing. (2025). “Specialized Insurance Lead Generation in New Zealand & Australia.” Retrieved from https://aisearch.marketing/insurance-lead-generation/geographic-coverage/

22.Insurance Asia. (2025). “New Zealand insurance market to hit $9.6b GWP by 2029.” Retrieved from https://insuranceasia.com/insurance/news/new-zealand-insurance-market-hit-96b-gwp-2029

23.Financial Services Council of New Zealand. (2025). “Industry Statistics.” Retrieved from https://blog.fsc.org.nz/tag/industry-statistics

25.Insurance Business Asia. (2020). “Boost your client conversion rate.” Retrieved from https://www.insurancebusinessmag.com/asia/business-strategy/boost-your-client-conversion-rate-211553.aspx

26.Financial Services Council of New Zealand. (2025). “Life Insurance Industry Spotlight March 2025.” Retrieved from https://blog.fsc.org.nz/lifeinsurance-spotlight-march-2025

27.Insurance Leads Guide. (2025). “Insurance Lead ROI Calculator.” Retrieved from https://insuranceleadsguide.com/insurance-leads-roi-calculator/

28.KPMG. (2023). “New Zealand Insurance Update 2023.” Retrieved from https://assets.kpmg.com/content/dam/kpmg/nz/pdf/2023/11/insurance-update-2023.pdf

29.Willis Towers Watson. (2019). “New Zealand Insurance Market Update.” Retrieved from https://www.wtwco.com/-/media/wtw/insights/2019/07/2019-nz-insurance-market-update.pdf

30.IBISWorld. (2024). “Insurance Brokerage in Australia Market Size Statistics.” Retrieved from https://www.ibisworld.com/australia/market-size/insurance-brokerage/1891/

31.Risk Info NZ. (2020). “Deloitte Issues Paper: The New Zealand Life Insurance Sector.” Retrieved from https://riskinfonz.co.nz/wp-content/uploads/2020/09/2020-life-insurance-sector-report.pdf

34.Insurance Brokers Association of Australia. (2023). “2021 Annual Data Report.” Retrieved from https://insurancebrokerscode.com.au/app/uploads/2023/04/IBCCC_2021_Annual_Data_Report-Apr-2023.pdf

36.KPMG. (2025). “New Zealand Insurance Update 2025.” Retrieved from https://assets.kpmg.com/content/dam/kpmg/nz/pdf/2025/03/nz-insurance-update-2025.pdf

37.National Insurance Brokers Association. (2025). “National Insurance Brokers Association of Australia.” Retrieved from https://www.niba.com.au/

39.Financial Services Council of New Zealand. (2025). “Industry Statistics.” Retrieved from https://blog.fsc.org.nz/tag/industry-statistics

40.Statista. (2025). “Insurances – New Zealand | Statista Market Forecast.” Retrieved from https://www.statista.com/outlook/fmo/insurances/new-zealand

Greg Dickson

Greg Dickson is a digital strategist, fractional CTO and CMO at Gerrards Insurance Brokers, and founder of AiSearch.Marketing, Bizsure and Money Savers..With over 20 years of experience in financial services and business leadership, Greg specializes in helping insurance and financial professionals across New Zealand and Australia dominate their markets through AI-driven content marketing, SEO, and lead generation. As a trusted advisor to regulated industries, Greg combines deep industry expertise with advanced technology to deliver predictable, high-quality client acquisition systems. His work is rooted in E-E-A-T principles and fully aligned with regulatory compliance standards. Whether scaling operations or optimizing search visibility, Greg’s mission is clear: help businesses win ethically, sustainably, and intelligently.