2007 Best Practices Study

Agencies with Revenues Between $1,250,000 and $2,500,000

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

50.0%

50.0%

37.5%

26.7%

37.5%

0.0%

$ Amount of Minimum Threshold

$994

$700

*

*Insufficient Data

Restrictive Covenants

Producer’s Ownership in Their Book

Use of Restrictive Covenants

Have No Producers Except Agency Owners 17.9%

None Have Signed 0.0%

Some Producers Share in Ownership of Books 27.6%

None Share in Ownership of Books 37.9%

Some Producers Have Signed 10.7%

All Producers Share in Ownership of Books 6.9%

All Producers Have Signed 71.4%

Have No Producers Except Agency Owners 27.6%

Enforceability of Restrictive Covenants

Increasing 3.4%

Don't Know 17.2%

Remaining the Same 75.9%

Decreasing 3.4%

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

50 2007 Best Practices Study | Agencies with Revenues Between $1,250,000 and $2,500,000 | Producer Info