The Pareto Principle at Play in Your Book of Business

Video Transcript

Hi, I’m James Graham, a Director out of our California office. When was the last time you analyzed your book of business? I ask because typically we see the bottom 50-80% of your book —those smaller, less profitable accounts— are likely holding you back.

The 80/20 rule, or Pareto Principle, asserts that 80% of your results come from just 20% of efforts. In the context of the insurance industry, this often pertains to smaller accounts that can drain time and resources while contributing minimally or even negatively to revenue and equity value.

You need to evaluate your book to free up capacity to unlock organic growth. By identifying and shedding low-impact accounts, moving them to a small business unit, you can refocus on larger, better opportunities that are more profitable and produce greater revenue.

It’s not about getting more clients—it’s about getting ideal clients. By increasing average account size and setting minimums for new business, you concentrate on fewer high-value accounts to fuel growth without straining capacity.

Success comes from optimizing your resources, refining your approach, and zeroing in on what truly moves the needle. Let go of what doesn’t contribute to your long-term goals, and watch your business grow with intentionality.