2022 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 8.5%

New Business $146,050

Average Book

Over age 55 34.6%

Commercial P&C

$1,359,074

Age 36-45 28.7%

Personal P&C

$91,603

$415,954

Multi-Line Production Sales Velocity 15.1%

Life/Health/Financial

$158,364

$1,230,294

Age 46-55 28.2%

$82,574

$1,143,501

Effective NUPP

Producer Success Rate 50.4%

NUPP 1.5%

Effective NUPP 0.8%

• 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. • Firms over $25M have the oldest producers (WAPA of 50.4), but also the producers with the largest average book size. Commercial lines producers average book serviced is $1,359,074, over $500,000 more than any other size category. • This size category reported the second-lowest sales velocity at 15.1% and the lowest top-quartile sales velocity. Firms over $25M also struggle with sales velocity contributions from younger producers versus other categories – the 2.0% sales velocity from producers under 35 is the lowest of all size categories and the only result under 3.0%.

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.

3.8%

21.5%

4.2%

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

5.2%

2.0%

Comparison Group Average

Average

Top Quartile

>$25M

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