2022 Best Practices Study

to support & enable the producer to focus on new business production. This is a highly technical position, requiring a comparable technical skill set to that of producers. An AE's primary responsibility is to manage the overall service plan/activities for an existing book of business and to maintain ongoing client relationships, including renewals & account development. In some agencies the AE position may have specific responsibility to solicit new clients or write new business that is referred/comes to agency, but a majority of time is spent on service and client retention. 80) Customer Service Representative (CSR) – Senior level service position in agencies where the AE position does not exist to support the producer. Position will serve as the main service contact for the client. Customer service duties are similar to AE duties including renewals, account upgrading, cross-selling, etc., but may include some processing responsibilities (e.g., coordinate new client set-up, prepare proposals, order & check policies, issue certificates, binders, billings, etc.). 81) Processor/Asst CSR – Lower level service position whose main function is to support other senior level service staff. Position may or may not have direct client contact. Duties vary but are usually processing oriented (e.g., coordinate new client set-ups, prepare proposals, order & check policies, issue certificates, binders, billings, etc.). 82) Marketing – Staff dedicated to marketing functions (negotiating with carriers to obtain coverage for clients - soliciting quotes/rates, negotiating coverage/pricing, placing new and renewal business with carriers, preparing proposals/binders, tracking market trends, pricing and underwriting policies). 83) Claims – This is a claims advocacy role. Coordinates P&C claims reporting, tracking, processing, and analysis for agency and its clients; delivers Value-Added-Service claims services.

73) NUPP (Net Investment in Unvalidated Producer Pay) — Expressed as a percentage of net revenue, the NUPP is the difference between what an agency pays its unvalidated producers and what the producers would earn under the agency's normal commission schedule. 74) Effective NUPP — 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. 75) Hiring Velocity — A gauge of an agency's hiring rate in replenishing its existing producer population. Calculated by taking the number of unvalidated producers hired in the most recent year and divide it into the agency's total number of producers. A healthy Hiring Velocity is typically in the 18-22% range. 76) Producer Average Compensation — The portion of a producer's total W-2 compensation that resulted from the producer's production responsibilities. Management and other non-sales compensation is excluded. Ownership & Staff Info 77) WASA (Weighted Average Shareholder Age) – A Reagan Consulting metric designed to assess the relative age of an agency's ownership team. WASA is calculated using the sum of the product of the agency's owners' ages and multiplying it by their ownership percentages. 78) Service Staff — Typically non-commissioned personnel who are responsible for providing service to the agency's clients and/or supporting producers in the sale of new business and the retention of existing business. 79) Account Executive (AE) – Senior level service position, usually assigned to a producer in order

Glossary

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