2001 Best Practices Study

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

CARRIER REPRESENTATION

A. Number of Carriers Represented

Average

+25% Profit

+25% Growth

Personal Lines National

6.6 3.4

6.9 2.6

5.6 3.1

Regional

Commercial Lines National

19.0 13.9 42.9

16.0 15.8 41.3

18.5 22.1 49.4

Regional

Total Carriers

B. Commission Income as % of Net Revenue

Average

+25% Profit

+25% Growth

% of Net Rev from Top Carrier % of Net Rev from Top 3 Carriers

13.3% 29.3%

13.2% 31.2%

12.1% 24.9%

C. Service Center Use

Total Pers'l Lines Commissions placed in Carrier Service Center Total Comm'l Lines Commissions placed in Carrier Service Center

14.2%

4.8%

3.4%

1.1%

1.1%

0.5%

TECHNOLOGY

A. Agency Management System Utilized:

% Utilitizing

AMS

43.3% 40.0% 16.7%

Applied Systems

Ebix

CAIR Doris InStar

0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

Strategic Insurance Software

irs-aims

VRC Other

B. Information Technology Expense (as % of Net Revenues)

Average

+25% Profit

+25% Growth

Total IT Expense for Fiscal Yr (1)

1.8%

1.9%

2.4%

(1) Includes hardware/software leasing, supplies, maintenance & maintenance contracts, training, data communications, website development/maintenance, computer depreciation, and software amortization

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