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.
Over age 55 Age 46-55 Age 36-45 Up to age 35
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. For firms in this revenue category, 42.5% of total producer books are serviced by producers over age 55 – the highest percentage in the Study . Sales Velocity is down from 15.4% last year to 14.1% this year, also contributing to the organic growth decline. Commercial lines producers are the most productive in this revenue group, writing the most new business per producer ($50,213) and servicing the largest book per producer ($356,115).
Up to age 35 14.3%
Average Book $356,115
Over age 55 42.5%
Age 36- 45 15.1%
Age 46- 55 28.1%
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