2010 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

Carriers

Mgmt. Perspectives

Profile

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

Revenues

4.1 3.8 7.9

3.8 3.1 6.9

3.6 3.8 7.4

Expenses

Regional

Profitability

Total

Commercial Lines P&C National

Employee Overview

4.1 3.5 7.6

5.1 3.7 8.8

4.1 4.2 8.3

Producer Info

Regional

Total

Staff Service Info

Group L&H / Financial Total

Technology

4.5

4.4

2.7

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

7.5%

10.0%

20.0%

10.0% 82.5%

0.0%

0.0%

90.0%

80.0%

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

7.5% 2.5%

20.0%

0.0% 0.0%

0.0%

90.0%

80.0%

100.0%

Revenue from Top Carriers

Average

+25% Profit

+25% Growth

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

32.3% 54.1%

40.1% 60.8%

31.5% 57.9%

% 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

4.9% 7.2%

4.1% 5.3%

3.6% 5.3%

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

2010 Best Practices Study

Agencies with Revenues Under $1,250,000

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