2001 Best Practices Study

Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000

Producer Summary

Average Commissions in Book

Average New Commissions Produced

$800,000

$250,000

$700,000

$600,000

$200,000

$500,000

$150,000

$400,000

$300,000

$100,000

$200,000

$50,000

$100,000

$0

$0

Commercial P&C Group L&H

Personal P&C

Multi-Line

Commercial P&C Group L&H Personal P&C

Multi-Line

Average Top 25%

Average Top 25%

D. Use of Restrictive Covenants

Average

+25% Profit

25%Growth

All producers have signed Some producers have signed

90.0% 3.3%

87.5% 0.0% 12.5%

87.5% 12.5%

6.7% 0.0%

0.0% 0.0%

None have signed

Have no producers except agency owners

0.0%

E. Producer's Ownership in their Book

Average

+25% Profit

25%Growth

10.0% 23.3% 66.7%

25.0% 12.5% 62.5%

25.0% 37.5% 37.5%

All producers share in ownership of books Some producers share in ownership of books

None share in ownership of books

0.0%

0.0%

0.0%

Have no producers except agency owners

F. CSR Productivity

1. Commercial P&C CSRs

Average

Top 25%

Number

15.6 38.0

High Low

6.0

Average Commissions Serviced

$261,235 $38,896

$377,264

Average Pay ($)

Average Pay (% of Book Serviced)

14.9%

How Time Was Spent:

4.4%

Selling New Business (New or Acct Rounding)

Marketing (Placement)

24.5%

Claims Processing Customer Service

1.6%

64.7%

Administration

4.7%

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