What Does Book of Business Mean?
A book of business, in the context of insurance, is a database or "book" that lists all of the insurance policies the insurance company has written. As a client relations management tool, it helps insurers keep track of all of their policyholders, their subsequent coverage obligations, and make relevant business decisions.
Insuranceopedia Explains Book of Business
Books of business also help insurance companies identify what areas are generating the most sales. With this information, the company can organize its top products and clients to determine whom it may want to market to in the future and what types of policies it may want to offer.
Books of business are very useful when insurance companies need to reflect on their customer data, follow-up on customer service, and optimize their sales decisions.