2022 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 18.1%

New Business $75,066

Average Book

Over age 55 29.5%

Commercial P&C

$538,267

Personal P&C

$34,552

$213,824

Age 36-45 23.9%

Multi-Line Production Sales Velocity 15.3%

Life/Health/Financial

$86,218

$261,218

Age 46-55 28.6%

$54,769

$457,169

Effective NUPP

Producer Success Rate 64.0%

NUPP 0.9%

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 had the second highest proportion of its book of business produced by producers aged 35 or younger (18.1%). • Driven in part by strong performance of younger producers, this revenue category had the second lowest NUPP (0.9%) and Effective NUPP (0.6%). Only the smallest revenue category invested less in unvalidated producers.

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.

3.7%

25.7%

3.3%

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

4.2%

4.1%

Comparison Group Average

Average

Top Quartile

$2.5-5M

30