2022 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 11.0%

New Business $33,315

Average Book

Over age 55 33.0%

Commercial P&C

$257,281

Age 36-45 22.2%

Personal P&C

$25,446

$211,046

Multi-Line Production Sales Velocity 15.4%

Life/Health/Financial

*

*

Age 46-55 33.8%

$34,351

$227,345

Effective NUPP

Producer Success Rate 65.9%

NUPP 0.6%

Effective NUPP 0.4%

• Effective NUPP, which is the product of an agency's investment in unvalidated producers (NUPP) and success rate in hiring producers (Producer Success Rate), is expressed as a percentage of net revenue. It is the best overall measure of an agency's effectiveness in recruiting and developing sales talent. • Over 66% of this group's book of business is controlled by older producers (>45), the highest concentration among all revenue categories. Getting younger will be a key priority for these agencies. • For the second straight year, this group scored lowest in NUPP and Effective NUPP, an indication that producer recruitment, hiring, and development continue to lag in these smaller agencies.

Sales Velocity

Notes & Definitions

Age Banding of Sales Velocity

• Sales Velocity is a critical metric in determining organic growth. It is defined as this year's written new business divided by last year's commissions and fees. • Age Banding of Sales Velocity can help a firm assess where new business and growth are coming from and prepare for perpetuation.

2.4%

26.6%

7.2%

Over age 55 Age 46-55 Age 36-45 Up to age 35

2.6%

3.1%

Comparison Group Average

Average

Top Quartile

<$1.25M

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