2022 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

New Business $31,228

Average Book

Over age 55 27.0%

Up to age 35 26.8%

Commercial P&C

$181,662

Personal P&C

$43,506

$231,815

Multi-Line Production Sales Velocity 17.4%

Life/Health/Financial

$120,318

$312,333

Age 46-55 19.0%

Age 36-45 27.2%

$62,390

$280,098

Effective NUPP

Producer Success Rate 58.1%

NUPP 1.1%

Effective NUPP 0.6%

• 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. • This revenue category posted the highest Sales Velocity in this year's Best Practices Study (17.4%). • This revenue category's L/H/F new business per producer results ($120,318) were the second highest in this year's Best Practices Study , trailing only the $25M+ revenue group.

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.

30.3%

3.9%

4.0%

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

5.1%

4.4%

Comparison Group Average

Average

Top Quartile

$1.25-2.5M

26

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