2007 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Commission Practices

Average

+25% Profit

+25% Growth

% of Agencies Paying Personal Lines Renewal Commissions to Commercial Producers (for cross-sell) % of Agencies with Minimum Threshold for Paying Commercial Lines Renewal Commissions

43.3%

25.0%

37.5%

36.7%

25.0%

25.0%

$ Amount of Minimum Threshold

$1,471

$1,550

$1,833

Restrictive Covenants

Producer’s Ownership in Their Book

Use of Restrictive Covenants

Have No Producers Except Agency Owners 0.0%

Some Producers Share in Ownership of Books 43.3%

Have No Producers Except Agency Owners 0.0%

None Have Signed 3.3%

Some Producers Have Signed 6.7%

None Share in Ownership of Books 46.7%

All Producers Share in Ownership of Books 10.0%

All Producers Have Signed 90.0%

Enforceability of Restrictive Covenants

Increasing 13.3%

Don't Know 6.7%

Remaining the Same 63.3%

Decreasing 16.7%

% of Agencies Requiring CSRs to sign Restrictive Covenants: 53.3%

108 2007 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Producer Info