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

23.8%

3.4%

Over age 55

Age 46-55

4.3%

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Age 36-45

Average

14.6%

4.7%

Up to age 35

2.2%

Comparison Group Average

Book of Business per Producer (commissions and fees)

Book of Business by Age

Notes & Definitions

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

Up to age 35 9.9%

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. With an Effective NUPP of 1.1%, agencies in this revenue category posted the second best results in the 2018 Best Practices Study . In all producer categories other than PL P&C, validated producers in this revenue group generated the highest average new business totals among the Study groups by a very wide margin.

New Business

Average Book

Over age 55 33.9%

Commercial P&C

$149,339

$1,025,639

Age 36- 45 25.0%

Personal P&C

$59,822

$346,089

Life/Health/ Financial

$180,882

$1,054,913

Multi- Line

$86,591

$1,035,361

Age 46- 55 31.2%

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Effective NUPP

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Group Average:

 50