2007 Best Practices Study

Agencies with Revenues Under $1,250,000

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

41.7%

66.7%

44.4%

5.6%

0.0%

0.0%

$ Amount of Minimum Threshold

*

*

*

*Insufficient Data

Restrictive Covenants

Producer’s Ownership in Their Book

Use of Restrictive Covenants

Some Producers Share in Ownership of Books 6.3%

Have No Producers Except Agency Owners 21.2%

Some Producers Have Signed 0.0%

All Producers Share in Ownership of Books 15.6%

None Have Signed 15.2%

None Share in Ownership of Books 43.8%

Have No Producers Except Agency Owners 34.4%

All Producers Have Signed 63.6%

Enforceability of Restrictive Covenants

Increasing 15.6%

Don't Know 6.3%

Decreasing 18.8%

Remaining the Same 59.4%

% of Agencies Requiring CSRs to sign Restrictive Covenants: 44.4%

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2007 Best Practices Study | Agencies with Revenues Under $1,250,000 | Producer Info