2003 Best Practices Study

T HE 2003 B EST P RACTICES S TUDY E XECUTIVE U PDATE

For First Time Readers of the Study The annual Best Practices Study originated in 1993 as an initiative to help independent agents build the value of their most important asset, their agencies. By studying the leading agencies and brokers in the country, the Independent Insurance Agents & Brokers of America (IIABA) hoped to provide member agents with meaningful performance benchmarks and business strategies that could be adopted or adapted for use in improving agency performance, thus enhancing agency value. The IIABA retained the principals of Reagan Consulting to create and perform the first study of The Best Practices of the Leading Independent Insurance Agencies in the United States . Today, the annual updates continue to provide important financial and operational benchmarks, and the study is recognized as one of the most thoughtful, effective and valuable resources ever made available to the industry. The leading agencies included in the annual study must be nominated for participation. Once every three years, the insurance companies participating in the IIABA’s Council for Best Practices and the Executive Directors of IIABA’s state association affiliates nominate the agencies they believe to be among the best. The 700-800 nominated agencies are then invited to participate and asked to complete an in-depth survey detailing their most recently completed fiscal year end results. From the 300+ agencies submitting data, the top 30 in each revenue category are included in the study for the next three years and earn the status of a “ Best Practices agency.” They are scored and ranked objectively for inclusion on the basis of Account Retention Rates, Revenue Growth, Productivity, Profitability, and Financial Stability. Participation in The Best Practices Study has become a prestigious recognition of the superior accomplishments of the top insurance agencies in each of the six size categories studied. About This Year’s Results The 2003 Best Practices Study Executive Update continues to follow the performance of the 180 agencies selected as Best Practices agencies in the 2001 study. Since 2001, banks or national and regional brokers have acquired 5% of those agencies.