2010 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

Mgmt. Perspectives

Validated Producer Productivity

Profile

Revenues

Average

Top 25%

Commercial P&C Producers Average Validated Producers # Validated

Expenses

Profitability

2.6 6.0 1.0

High Low

Employee Overview

Producer Info

Average New Commissions Produced Annually

$78,419 $382,566 $124,518

$163,002 $628,469

Average Book Serviced (Commissions)

Staff Service Info

Average Pay ($)

Technology

Average Pay (% of Book Serviced)

32.5%

Group Life & Health Producers Average Validated Producers # Validated

Insurance Carriers

Appendix

1.2 2.0 0.5

High Low

Average New Commissions Produced Annually

$33,321 $138,814 $61,210

$68,886 $567,558

Average Book Serviced (Commissions)

Average Pay ($)

Average Pay (% of Book Serviced)

44.1%

Personal P&C Producers Average Validated Producers # Validated

1.7 6.0 1.0

High Low

Average New Commissions Produced Annually

$28,811 $176,702 $53,064

$51,604 $390,845

Average Book Serviced (Commissions)

Average Pay ($)

Average Pay (% of Book Serviced)

30.0%

Multi-Line Producers Average Validated Producers # Validated

3.3 9.0 1.0

High Low

2010 Best Practices Study

Average New Commissions Produced Annually

$63,611 $409,653 $132,319

$136,968 $788,656

Average Book Serviced (Commissions)

Average Pay ($)

Agencies with Revenues Between $1,250,000 and $2,500,000

Average Pay (% of Book Serviced)

32.3%

*Insufficient Data

Average

+25% Profit

+25% Growth

% of Agencies That Reimburse All/Part T&E Expense

79.1%

81.8%

63.6%

50

% of Earned Premium charged back to Producers for bad debt write-offs: 57.9%