28 / 191
2010 Best
Practices Study
Agencies
with Revenues
Under $1,250,000
28
Analysis of Agencies with Revenues Under $1,250,000
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Staff Service Info
Technology
Insurance Carriers
Appendix
Average +25% Profit +25% Growth
Carrier Representation
Personal Lines P&C
National
4.1
3.8
3.6
Regional
3.8
3.1
3.8
Total
7.9
6.9
7.4
Commercial Lines P&C
National
4.1
5.1
4.1
Regional
3.5
3.7
4.2
Total
7.6
8.8
8.3
Group L&H / Financial
Total
4.5
4.4
2.7
Average
+25% Profit
+25% Growth
% of Agencies That Will:
Increase the Number of Carriers Represented
7.5%
10.0%
20.0%
Decrease the Number of Carriers Represented
10.0%
0.0%
0.0%
Keep the Same Number of Carriers Represented
82.5%
90.0%
80.0%
Average
+25% Profit
+25% Growth
% of Agencies That Will:
Increase the Number of Carriers Represented
7.5%
20.0%
0.0%
Decrease the Number of Carriers Represented
2.5%
0.0%
0.0%
Keep the Same Number of Carriers Represented
90.0%
80.0%
100.0%
Average
+25% Profit
+25% Growth
Commission Income Derived from Top Carriers
% of Net Rev from Top P&C Carrier
32.3%
40.1%
31.5%
% of Net Rev from Top 3 P&C Carriers
54.1%
60.8%
57.9%
% of Net Rev from Top L&H/F Carrier
4.9%
4.1%
3.6%
% of Net Rev from Top 3 L&H/F Carrier
7.2%
5.3%
5.3%
Carriers
12 Month Plans for Carrier Representation
P&C Carriers
L&H Carriers
Revenue from Top Carriers
Revenues from Top P&C Carrier–Breakdown By Line of Business