88 / 191
2010 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
88
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
5.2
6.1
7.1
Regional
4.6
5.6
5.4
Total
9.8
11.7
12.5
Commercial Lines P&C
National
11.6
7.7
19.7
Regional
7.4
6.1
8.2
Total
18.9
13.8
27.9
Group L&H / Financial
Total
15.3
11.1
17.5
Average
+25% Profit
+25% Growth
% of Agencies That Will:
Increase the Number of Carriers Represented
16.2%
30.0%
30.0%
Decrease the Number of Carriers Represented
13.5%
0.0%
10.0%
Keep the Same Number of Carriers Represented
70.3%
70.0%
60.0%
Average
+25% Profit
+25% Growth
% of Agencies That Will:
Increase the Number of Carriers Represented
13.5%
20.0%
20.0%
Decrease the Number of Carriers Represented
5.4%
0.0%
10.0%
Keep the Same Number of Carriers Represented
81.1%
80.0%
70.0%
Average
+25% Profit
+25% Growth
Commission Income Derived from Top Carriers
% of Net Rev from Top P&C Carrier
17.2%
16.1%
16.4%
% of Net Rev from Top 3 P&C Carriers
35.2%
34.7%
35.7%
% of Net Rev from Top L&H/F Carrier
6.0%
2.2%
8.1%
% of Net Rev from Top 3 L&H/F Carrier
9.7%
3.6%
10.4%
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