2001 Best Practices Study

Analysis of Agencies with Revenues Greater Than $10,000,000

CARRIER REPRESENTATION

A. Number of Carriers Represented

Average

+25% Profit

+25% Growth

Personal Lines National

9.3 3.3

9.6 5.1

5.4 4.1

Regional

Commercial Lines National

31.0 28.9 72.5

34.5 25.0 74.3

19.6 51.8 80.9

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

11.1% 22.7%

11.8% 23.3%

12.7% 22.5%

C. Service Center Use

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

6.7%

*

*

6.3%

24.7%

*

* - Insufficient Data

TECHNOLOGY

A. Agency Management System Utilized:

% Utilitizing

AMS

40.0% 30.0% 23.3%

Applied Systems

Ebix

CAIR Doris InStar

6.7% 0.0% 0.0% 0.0% 0.0% 0.0% 6.7%

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)

1.9%

1.8%

1.5%

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

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