2017 Best Practices Study-Study Sponsors
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In addition to the average results for each study group, the BPS provides insights on how the “best of the best” are operating. This table will help you understand the terms used to report this information.
The average result achieved by all the firms in the study group for a particular factor.
The lowest result achieved in the peer group for a particular factor.
The highest result achieved in the peer group for a particular factor.
The average results achieved by the Top 25% of the firms in the group for that particular factor or line item.
The mid-point in a list of results achieved by all the firms in the study group for a particular factor.
5(9(18(6 (As reported for most recently completed fiscal year-end and stated as a percentage of gross revenues)
Property & Casualty: 1) Commercial Commissions & Fees — Commissions and fees for the sale of commercial P&C insurance. Includes items often considered "value-added services," (e.g., revenues from workers' comp TPA, loss control, engineering, risk management, consulting services, self-insurance programs, underwriting and claims services, additional carrier compensation or reimbursements for services provided on their behalf, etc.). 2) Bonds / Surety — Commissions from the sale of bonds (surety, fidelity, etc.). 3) Personal Commissions & Fees - Commissions (both direct and agency-billed), and fees earned in lieu of commissions for the sale of personal P&C insurance. 4) Contingent / Bonus — Profit sharing, bonus, and supplemental income received from insurance carriers. 5) Total P&C — The sum of items 1 – 4. Life & Health / Financial 6) Group Medical Commissions & Fees — Commissions & fees from the sale of group health/medical insurance. 7) All Other Group Commissions & Fees — Commissions and fees from the sale of all other employee benefits products and services. Includes group life, dental, disability, pension, retirement plan, PEOs, investment products, and any revenue from delivery of value added services (VAS) - i.e., benefits, TPA HR/wellness/other consulting services, actuarial services, risk management, cost containment, and any other related to employee benefits, life and health, or financial services. 8) Individual Commissions & Fees — Commissions & fees from the sale of individual life, health, dental, disability & investment products. 9) Bonus / Overrides — Bonus or incentive payments paid to agency for L&H promotion (usually for volume, persistency, growth, etc.). 10) Total L&H / Financial — The sum of items 6 – 9.
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