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

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

16.0%

0.0%

28.6%

64.0%

42.9%

71.4%

$ Amount of Minimum Threshold

$4,147

$2,500

$4,300

Restrictive Covenants

Producer’s Ownership in Their Book

Use of Restrictive Covenants

Have No Producers Except Agency Owners 0.0%

None Have Signed 0.0%

Some Producers Have Signed 8.0%

Have No Producers Except Agency Owners 0.0%

Some Producers Share in Ownership of Books 20.0%

None Share in Ownership of Books 76.0%

All Producers Have Signed 92.0%

All Producers Share in Ownership of Books 4.0%

Enforceability of Restrictive Covenants

Increasing 12.0%

Don't Know 4.0%

Remaining the Same 68.0%

Decreasing 16.0%

% of Agencies Requiring CSRs to sign Restrictive Covenants: 60.0%

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