55 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$1,250,000 and
$2,500,000
55
Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000
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
29.4%
50.0%
12.5%
$ Amount of Commercial P&C Threshold
$1,610
$2,375
$500
$ Amount of Personal P&C Threshold
$150
$250
*
$ Amount of Group L&H Threshold
$500
$500
*
% of Agencies That Give/Assign Books of
Business to New Producers
23.5%
*
*
Reduce Commission on Assigned Book
26.5%
37.5%
37.5%
Number of Points Reduced
15
20
11
% of Agencies that Raise Reduced Rate
Over Time
26.5%
0.0%
25.0%
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
75.8%
9.1%
9.1%
6.1%
75.0%
0.0%
12.5%
12.5%
75.0%
12.5%
0.0%
12.5%
Commission Practices
*Insufficient Data