183 / 204
2013 Best
Practices Study
Agencies
with
Revenues
Over
$25,000,000
183
Analysis of Agencies with Revenues Over $25,000,000
Key Benchmarks
Mgmt. Perspectives
Profile
Revenues
Expenses
Profitability
Employee Overview
Producer Info
Service Staff Info
Technology
Insurance Carriers
Appendix
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
87.0%
8.7%
4.3%
0.0%
100.0%
0.0%
0.0%
0.0%
100.0%
0.0%
0.0%
0.0%
Average
+25% Profit
+25% Growth
Agency Practices
% of Agencies with Threshold below which
New / Renewal Commissions are not paid
73.1%
66.7%
66.7%
$ Amount of Commercial P&C Threshold
$4,147
$3,500
$7,000
$ Amount of Personal P&C Threshold
$3,400
$750
$5,250
$ Amount of Group L&H Threshold
$4,285
$2,833
$6,500
% of Agencies That Give/Assign Books of
Business to New Producers
46.2%
16.7%
50.0%
Reduce Commission on Assigned Book
73.1%
66.7%
66.7%
Number of Points Reduced
8
13
14
% of Agencies that Raise Reduced Rate
Over Time
34.6%
16.7%
16.7%
Restrictive Covenants
Commission Practices