2022 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 17.0%

New Business $86,235

Average Book

Over age 55 30.7%

Commercial P&C

$575,260

Personal P&C

$58,407

$294,946

Age 36-45 27.5%

Multi-Line Production Sales Velocity 15.5%

Life/Health/Financial

$74,315

$482,569

Age 46-55 24.8%

$56,530

$478,804

Effective NUPP

Producer Success Rate 54.2%

NUPP 1.2%

Effective NUPP 0.7%

• 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 45 or younger (44.5%), trailing only the $1.25–2.5M category (54.0%). • $5–10M revenue firms posted the third lowest producer success rate, surpassing only the two larger revenue categories.

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.

3.6%

25.5%

2.9%

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

4.6%

4.3%

Comparison Group Average

Average

Top Quartile

$5-10M

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