2018 Best Practices Study

Definitions

Sales Velocity

Age Banding of Sales Velocity

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.

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Top Quartile

22.4%

2.2%

Over age 55

Age 46-55

5.7%

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Age 36-45

Average

14.5%

Up to age 35

3.2%

3.4%

Comparison Group Average

Book of Business per Producer (commissions and fees)

Book of Business by Age

Notes & Definitions

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. The Effective NUPP for this size category of 1.4% is the highest of all revenue categories. BPS agencies under $1.25 million have gotten younger from a production standpoint in the last year – book of business for producers over age 55 has dropped from 33.7% of revenue to 23.3% of revenue, while Sales Velocity for producers 45 and under has grown from 5.3% to 6.6%. Multi-line producers maintain the largest books of business in this size category, but personal P&C producers wrote the most new business.

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Over age 55 23.3%

New Business

Average Book

Up to age 35 18.2%

Commercial P&C

$31,022

$198,783

Personal P&C

$41,506

$125,140

Life/Health/ Financial

Age 36- 45 24.8%

$23,126

$74,267

Multi- Line

$37,107

$263,559

Age 46- 55 33.7%

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Effective NUPP

Group Average:

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 30