2022 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 15.1%

New Business $105,005

Average Book

Over age 55 29.2%

Commercial P&C

$773,998

Personal P&C

$51,371

$285,201

Age 36-45 26.9%

Multi-Line Production Sales Velocity 14.8%

Life/Health/Financial

$97,996

$737,383

Age 46-55 28.8%

$82,340

$673,337

Effective NUPP

Producer Success Rate 53.8%

NUPP 1.2%

Effective NUPP 0.9%

• 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. • Effective NUPP rose from 0.7% last year to 0.9% this year, giving $10-$25 million the highest effective producer investment of any BPS size category. • Even with the relatively strong producer investment, this size category produced the lowest sales velocity of any size category at 14.8%, trailing performing category ($1.25-$2.5 million) by 2.6%.

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.

3.4%

24.1%

4.1%

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

4.2%

3.1%

Comparison Group Average

Average

Top Quartile

$10-25M

38