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2007 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Financial Stability
Agencies with Revenues Between $10,000,000 and $25,000,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Financial Stability
Accounts Receivable
Average
Top 25%
Balance Sheet
Current Ratio
1.34:1
2.01:1
Tangible Net Worth (% of Net Revenue)
10.0%
29.6%
Receivables/Payable Ratio
44.8%
-3.9%
Aged Receivables
% Receivables Aged Past 60 Days
13.3%
1.6%
% Receivables Aged Past 90 Days
2.4%
0.9%
Average
+25% Profit
+25% Growth
Agency Billed vs. Direct Billed by Carrier
% of P&C Revenues that are Agency Billed
52.6%
54.6%
74.9%
% of P&C Revenues that are Direct Billed
44.0%
32.9%
25.1%
Receivable Management Practices
Participants were asked to indicate which practices they utilized and to score the practices’ effectiveness where
1=NOT
EFFECTIVE
and
5=EXTREMELY EFFECTIVE.
1
2
3
4
5
Management reviews receivables regularly
100.0%
Have strict collection policy
65.5%
Encourage/require use of direct bill
72.4%
Encourage/require use of premium finance
79.3%
Use pre-billing and binder billing
86.2%
Centralize collections & remove producer involvement
37.9%
Charge producers for bad debt-write-offs
89.7%
% of Premium charged back to Producers for bad debt write-offs: 89.8%
% Using