2010 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

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

37.8%

40.0%

60.0%

$1,333

$1,375

$1,300

Employee Overview

$12,838

*

$425

Producer Info

$1,875

$1,750

$1,500

Staff Service Info

27.0%

20.0%

30.0%

Technology

45.9%

30.0%

60.0%

Insurance Carriers

*Insufficient Data

Appendix

Restrictive Covenants

2010 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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