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2007 Best Practices Study | Agencies with Revenues Over $25,000,000 | Financial Stability
Agencies with Revenues Over $25,000,000
Appendix
Insurance
Carriers
Technology
Service
Staff Info
Producer
Info
Employee
Overview
Financial
Stability
Revenues/
Expenses
Executive
Perspectives
Profile
Financial Stability
Average
Top 25%
Balance Sheet
Current Ratio
1.29:1
1.82:1
Tangible Net Worth (% of Net Revenue)
8.9%
32.5%
Receivables/Payable Ratio
59.3%
39.3%
Aged Receivables
% Receivables Aged Past 60 Days
9.3%
1.1%
% Receivables Aged Past 90 Days
5.8%
0.7%
Average
+25% Profit
+25% Growth
Agency Billed vs. Direct Billed by Carrier
% of P&C Revenues that are Agency Billed
55.9%
42.2%
54.9%
% of P&C Revenues that are Direct Billed
36.1%
43.6%
30.8%
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
87.5%
Have strict collection policy
66.7%
Encourage/require use of direct bill
70.8%
Encourage/require use of premium finance
83.3%
Use pre-billing and binder billing
83.3%
Centralize collections & remove producer involvement
12.5%
Charge producers for bad debt-write-offs
62.5%
% of Premium charged back to Producers for bad debt write-offs: 78.7%
Accounts Receivable
% Using