2010 Best Practices Study

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

Mgmt. Perspectives

Commission Practices

Profile

Revenues

Average

+25% Profit

+25% Growth

Agency Practices % of Agencies with Minimum Threshold for Not Paying New / Renewal Commissions $ Amount of Commercial P&C Threshold $ Amount of Personal P&C Threshold $ Amount of Group L&H Threshold % of Agencies That Give/Assign Book of Business to New Producers % of Agencies Whose Validated Producers are Periodically Required to Purge Smaller/Less Profitable Accounts

Expenses

Profitability

42.2%

41.7%

41.7%

$1,279

$1,200 $1,000 $1,500

$1,300

Employee Overview

$760

$667

Producer Info

$1,700

$1,400

Staff Service Info

20.0%

8.3%

16.7%

Technology

31.1%

41.7%

25.0%

Insurance Carriers

Appendix

Restrictive Covenants

2010 Best Practices Study

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

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