2007 Best Practices Study

Agencies with Revenues Over $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

96.0%

85.7%

85.7%

# of New Producers Hired Last Year

8.4

12.3

7.3

Average Annualized Wages per Producer Hired

$87,111

$55,474

$94,425

Where New Producers Were Found

“Successful” New Producers 55.4%

Outside of Industry 14.8%

Directly From College or Graduate School 5.5% An Insurance

Another Insurance

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

Broker 67.5%

Carrier 11.8%

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

“No question the key to our future growth is the ability to continue to recruit and develop producers. Our challenge is that we believe we’ve already attracted the best insurance people in our community. This means that we’re going outside of the industry more and more often. As we are doing this, we are realizing that producer training and development is a critical success factor, more than in the past.”

Future Hiring Plans

Average

+25% Profit

+25% Growth

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

92.0%

85.7%

71.4%

Number of Producers to be Hired

6.7

4.5

7.0

165 2007 Best Practices Study | Agencies with Revenues Over $25,000,000 | Producer Info