2010 Best Practices Study

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

Carriers

Mgmt. Perspectives

Profile

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

Revenues

8.1 5.2

6.8 4.4

4.8 7.1

Expenses

Regional

Profitability

Total

13.3

11.2

11.9

Commercial Lines P&C National

Employee Overview

20.8 10.2 31.0

9.5 7.7

9.5 9.8

Producer Info

Regional

Total

17.2

19.3

Staff Service Info

Group L&H / Financial Total

Technology

25.5

17.7

34.3

Insurance Carriers

12 Month Plans for Carrier Representation P&C Carriers

Appendix

Average

+25% Profit

+25% Growth

% of Agencies That Will: Increase the Number of Carriers Represented Decrease the Number of Carriers Represented Keep the Same Number of Carriers Represented

11.1%

8.3% 8.3%

8.3% 8.3%

6.7%

82.2%

83.3%

83.3%

L&H Carriers

Average

+25% Profit

+25% Growth

% of Agencies That Will: Increase the Number of Carriers Represented Decrease the Number of Carriers Represented Keep the Same Number of Carriers Represented

13.3%

16.7%

16.7%

2.2%

0.0%

0.0%

84.4%

83.3%

83.3%

Revenue from Top Carriers

Average

+25% Profit

+25% Growth

Commission Income Derived from Top Carriers % of Net Rev from Top P&C Carrier

13.9% 34.2%

17.9% 32.2%

16.5% 55.3%

% of Net Rev from Top 3 P&C Carriers % of Net Rev from Top L&H/F Carrier % of Net Rev from Top 3 L&H/F Carrier

8.3%

5.5% 8.6%

8.4%

12.6%

15.2%

Revenues from Top P&C Carrier–Breakdown By Line of Business

2010 Best Practices Study

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

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