58 / 191
2010 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
58
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
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
4.5
3.8
3.4
Regional
4.2
3.5
3.5
Total
8.6
7.3
6.8
Commercial Lines P&C
National
7.8
4.4
4.0
Regional
7.1
5.5
5.0
Total
14.8
9.8
9.0
Group L&H / Financial
Total
7.1
7.5
5.8
Average
+25% Profit
+25% Growth
% of Agencies That Will:
Increase the Number of Carriers Represented
14.0%
18.2%
9.1%
Decrease the Number of Carriers Represented
16.3%
36.4%
9.1%
Keep the Same Number of Carriers Represented
69.8%
45.5%
81.8%
Average
+25% Profit
+25% Growth
% of Agencies That Will:
Increase the Number of Carriers Represented
4.7%
27.3%
18.2%
Decrease the Number of Carriers Represented
7.0%
18.2%
9.1%
Keep the Same Number of Carriers Represented
88.4%
54.5%
72.7%
Average
+25% Profit
+25% Growth
Commission Income Derived from Top Carriers
% of Net Rev from Top P&C Carrier
26.1%
26.5%
38.5%
% of Net Rev from Top 3 P&C Carriers
47.1%
41.4%
63.9%
% of Net Rev from Top L&H/F Carrier
4.9%
4.1%
3.4%
% of Net Rev from Top 3 L&H/F Carrier
7.0%
5.9%
4.1%
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