2010 Best Practices Study

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

Carriers

Mgmt. Perspectives

Profile

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

Revenues

5.2 4.6 9.8

6.1 5.6

7.1 5.4

Expenses

Regional

Profitability

Total

11.7

12.5

Commercial Lines P&C National

Employee Overview

11.6

7.7 6.1

19.7

Producer Info

Regional

7.4

8.2

Total

18.9

13.8

27.9

Staff Service Info

Group L&H / Financial Total

Technology

15.3

11.1

17.5

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

16.2% 13.5% 70.3%

30.0%

30.0% 10.0% 60.0%

0.0%

70.0%

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

13.5%

20.0%

20.0% 10.0% 70.0%

5.4%

0.0%

81.1%

80.0%

Revenue from Top Carriers

Average

+25% Profit

+25% Growth

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

17.2% 35.2%

16.1% 34.7%

16.4% 35.7%

% 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

6.0% 9.7%

2.2% 3.6%

8.1%

10.4%

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

2010 Best Practices Study

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

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