2007 Best Practices Study

Agencies with Revenues Between $10,000,000 and $25,000,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Producer Information

New Producer Hiring

Average

+25% Profit

+25% Growth

% of Agencies that Hired New Producers Last Year

90.0%

75.0%

87.5%

# of New Producers Hired Last Year

3.3

4.2

3.6

Average Annualized Wages per Producer Hired

$67,108

$51,684

$68,525

Where New Producers Were Found

“Successful” New Producers 59.7%

Outside of Industry 31.3%

Another Insurance

Directly From College or Graduate School 4.0%

Broker 42.1%

of producers hired over the last 5 years have met their production goals

An Insurance

Carrier 22.6%

“Outside of Industry” includes other sales (technology, golf, pharmaceuticals, food, uniforms), IT consulting, hospitality, fund-raising, banking, manufacturing, telecommunications, environmental, non-profit, and trucking

“Our biggest growth problem is with our gray-hairs. The young producers ‘get it.’ They, by nature of their own financial needs, are focused on writing new business. We have too many fat and happy middle-aged producers. Even worse, many of them are owners in the business. Their example is not lost on the rest of the organization.”

Future Hiring Plans

Average

+25% Profit

+25% Growth

% of Agencies That Plan to Hire a New Producer During Current Fiscal Year

86.7%

62.5%

75.0%

Number of Producers to be Hired

3.3

5.4

3.0

135 2007 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Producer Info