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2013 Best
Practices Study
Agencies
with Revenues
Between
$10,000,000 and
$25,000,000
151
Analysis of Agencies with Revenues Between $10,000,000 and $25,000,000
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
66.7%
75.0%
75.0%
$ Amount of Commercial P&C Threshold
$3,050
$1,917
$2,500
$ Amount of Personal P&C Threshold
$1,300
$1,750
$2,750
$ Amount of Group L&H Threshold
$3,518
$3,400
$2,250
% of Agencies That Give/Assign Books of
Business to New Producers
46.2%
*
50.0%
Reduce Commission on Assigned Book
66.7%
*
87.5%
Number of Points Reduced
11
*
12
% of Agencies that Raise Reduced Rate
Over Time
30.3%
*
50.0%
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
84.0%
13.0%
3.0%
0.0%
50.0%
33.0%
17.0%
0.0%
100.0%
0.0%
0.0%
0.0%
Commission Practices
*Insufficient Data