2001 Best Practices Study

T HE 2001 B EST P RACTICES S TUDY E XECUTIVE U PDATE

Background In 1993, the IIAA’s Commission to Enhance Agency Value retained the principals of Reagan Consulting to create and perform the study of The Best Practices of the Leading Independent Insurance Agencies in the United States . Updated annually, the study provides important financial and operational benchmarks and is recognized as one of the most thoughtful, effective and valuable resources ever made available to the industry. The leading agencies included in the study are nominated once every three years by the insurance companies participating on the Commission and the Executive Directors of IIAA’s state associations. Those nominated are then asked to complete an in-depth survey. From those agencies submitting data, the top 30 in each revenue category are then included in the study for the next three years and earn the status of a “Best Practices Agency.” They are scored and ranked objectively for inclusion on the basis of Account Retention Rates, Revenue Growth, Productivity, Profitability, and Financial Stability. Participation in The Best Practices Study has become a prestigious recognition of the superior accomplishments of the top insurance agencies in each of the six size categories studied. About this study Of the 800 agencies nominated, more than 250 submitted data for the 2001 Best Practices Study . This year the study provides a more comprehensive look at agency results and operations. Supplementary information was gathered in the following areas: • Agency technology • Benefits provided to agency employees • Revenues derived by line of business and services provided • Details on acquisition transactions In addition telephone interviews were conducted with the top agencies in each of the six revenue categories to glean the business practices used by these organizations to achieve their outstanding results.

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