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2013 Best
Practices Study
Agencies
with Revenues
Between
$5,000,000 and
$10,000,000
119
Analysis of Agencies with Revenues Between $5,000,000 and $10,000,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
Average
+25% Profit
+25% Growth
Agency Practices
% of Agencies with Threshold below which
New / Renewal Commissions are not paid
59.1%
70.0%
70.0%
$ Amount of Commercial P&C Threshold
$1,217
$550
$550
$ Amount of Personal P&C Threshold
$738
$0
$50
$ Amount of Group L&H Threshold
$1,629
$250
$400
% of Agencies That Give/Assign Books of
Business to New Producers
37.2%
50.0%
50.0%
Reduce Commission on Assigned Book
50.0%
60.0%
20.0%
Number of Points Reduced
6
10
3
% of Agencies that Raise Reduced Rate
Over Time
20.5%
20.0%
0.0%
Restrictive Covenants
Use of
Restrictive Covenants
+25% Profit
Average
+25% Growth
All Producers Have Signed
Some Producers Have Signed
None Have Signed
Have No Producers Except Agency Owners
85.7%
7.1%
7.1%
0.0%
90.0%
0.0%
10.0%
0.0%
90.0%
10.0%
0.0%
0.0%
Commission Practices