2001 Best Practices Study

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THE 2001 B EST P RACTICES STUDY EXECUTIVE UPDATE
Background
In 1993, the IIAA’s Commission to Enhance Agency Value retained the principals of Reagan
Consulting to create and perform the study of The Best Practices of the Leading Independent
Insurance Agencies in the United States. Updated annually, the study provides important
financial and operational benchmarks and is recognized as one of the most thoughtful, effective
and valuable resources ever made available to the industry.
The leading agencies included in the study are nominated once every three years by the
insurance companies participating on the Commission and the Executive Directors of IIAA’s state
associations. Those nominated are then asked to complete an in-depth survey. From those
agencies submitting data, the top 30 in each revenue category are then included in the study for
the next three years and earn the status of a “Best Practices Agency.” They are scored and
ranked objectively for inclusion on the basis of Account Retention Rates, Revenue Growth,
Productivity, Profitability, and Financial Stability. Participation in The Best Practices Study has
become a prestigious recognition of the superior accomplishments of the top insurance agencies
in each of the six size categories studied.
About this study
Of the 800 agencies nominated, more than 250 submitted data for the 2001 Best Practices
Study. This year the study provides a more comprehensive look at agency results and
operations. Supplementary information was gathered in the following areas:
• Agency technology
• Benefits provided to agency employees
• Revenues derived by line of business and services provided
• Details on acquisition transactions
In addition telephone interviews were conducted with the top agencies in each of the six revenue
categories to glean the business practices used by these organizations to achieve their
outstanding results.
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