2010 Best Practices Study

Analysis of Agencies with Revenues Over $25,000,000

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

52.6%

20.0%

40.0%

$3,450

* * *

$4,500

Employee Overview

*

* *

Producer Info

$4,100

Staff Service Info

15.8%

0.0%

40.0%

Technology

42.1%

0.0%

40.0%

Insurance Carriers

*Insufficient Data

Appendix

"We are optimistic about the long term future but things are pretty tough right now. Current difficulties have motivated us to make some tough calls that we should have made years ago. We will be better because of these tough times."

Restrictive Covenants

2010 Best Practices Study

Agencies with Revenues Over $25,000,000

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