87 / 204
2013 Best
Practices Study
Agencies
with Revenues
Between
$2,500,000 and
$5,000,000
87
Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000
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
32.6%
27.3%
45.5%
$ Amount of Commercial P&C Threshold
$1,293
*
*
$ Amount of Personal P&C Threshold
$1,000
*
*
$ Amount of Group L&H Threshold
$1,700
*
*
% of Agencies That Give/Assign Books of
Business to New Producers
30.4%
*
*
Reduce Commission on Assigned Book
26.1%
*
*
Number of Points Reduced
10
*
*
% of Agencies that Raise Reduced Rate
Over Time
8.7%
*
*
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
85.0%
7.5%
5.0%
2.5%
77.8%
11.1%
0.0%
11.1%
66.7%
11.1%
11.1%
11.1%
Commission Practices
*Insufficient Data