2017 Best Practices Study-Study Sponsors

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Sales Velocity is a critical metric in determining organic growth. It is defined as this year’s written new business divided by last year’s commissions and fees. Age Banding of Sales Velocity can help a firm assess where new business and growth are coming from and prepare for perpetuation.

x

2.5%

Top Quartile

20.9%

3.3%

Over age 55 Age 46-55 Age 36-45 Up to age 35

4.0%

x

Average

13.2%

3.3%

Comparison Group Average

x Weighted average producer age (WAPA) is 46. x

Effective NUPP, which is the product of an agency’s investment in unvalidated producers (NUPP) and success rate in hiring producers (Producer Success Rate), is expressed as a percentage of net revenue. It is the best overall measure of an agency’s effectiveness in recruiting and developing sales talent. Sales Velocity in this revenue group is down from 15.5% last year to 13.2% this year, fueling the organic growth decline. Producers under age 46 contributed significantly more to Sales Velocity (7.3%) than producers over age 46 (5.8%). Agencies in this group have increased their producer investments in the last year, raising Effective NUPP from 0.8% to 1.0%. The Effective NUPP of 1.0% for this size firms are the highest in the Study .

Up to age 35 13.6%

New Business

Average Book $566,836

Over age 55 29.5%

Commercial P&C

$67,880

Personal P&C

$50,651

$314,777

Age 36- 45 27.1%

Life/Health/ Financial

$103,842

$540,743

Multi- Line

$74,564

$557,229

Age 46- 55 29.8%

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x

Group Average:

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