2010 Best Practices Study

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

Carriers

Mgmt. Perspectives

Profile

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

Revenues

4.5 4.2 8.6

3.8 3.5 7.3

3.4 3.5 6.8

Expenses

Regional

Profitability

Total

Commercial Lines P&C National

Employee Overview

7.8 7.1

4.4 5.5 9.8

4.0 5.0 9.0

Producer Info

Regional

Total

14.8

Staff Service Info

Group L&H / Financial Total

Technology

7.1

7.5

5.8

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

14.0% 16.3% 69.8%

18.2% 36.4% 45.5%

9.1% 9.1%

81.8%

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

4.7% 7.0%

27.3% 18.2% 54.5%

18.2%

9.1%

88.4%

72.7%

Revenue from Top Carriers

Average

+25% Profit

+25% Growth

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

26.1% 47.1%

26.5% 41.4%

38.5% 63.9%

% 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% 7.0%

4.1% 5.9%

3.4% 4.1%

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

2010 Best Practices Study

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

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