2002 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

CARRIER REPRESENTATION

A. Number of Carriers Represented

Average

+25% Profit

+25% Growth

Personal Lines National

3.1 4.1

2.9 3.8

2.5 3.0

Regional

Commercial Lines National

9.2 8.4

9.8 6.5

11.5 10.6 27.6

Regional

Total Carriers

24.8

23.0

B. Commission Income as % of Net Revenue

Average

+25% Profit

+25% Growth

% of Net Rev from Top Carrier % of Net Rev from Top 3 Carriers

21.5% 41.7%

20.3% 40.8%

16.5% 35.1%

C. Service Center Use

Total Pers'l Lines Commissions placed in Carrier Service Center Total Comm'l Lines Commissions placed in Carrier Service Center

17.8%

*

*

3.8%

*

*

*Insufficient Data

57