2013 Best Practices Study

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

Service Staff Productivity

Service & Sales Support Staff Definition • Typically non-commissioned employees • Provide service to the agency’s clients • Support producers in the sale of new business and retention of existing business Some service positions may earn commission income but typically a majority of their pay is fixed and a majority of their time is devoted to service rather than the soliciting of new clients. Service & Sales Support Positions* Included in Full-time Equivalent Headcounts • Account Executives (AE) - senior level service representatives • Account Managers, Customer Service Representatives (CSRs) • Assistant CSRs, Processors • Claims Staff • Placers/Marketers • Department Managers - who also service clients * Position titles are general categories since specific job titles vary from agency to agency Administrative personnel such as accounting, mail room, and reception are not included in service benchmarks unless a portion of their time is dedicated to service.

Service Staff Overview

Average

+25% Profit +25% Growth

Total # of Service Staff:

(as defined above; excludes any TPA service staff)

48.4

38.2

49.6

% of Peer Agencies Having:

Separate/Dedicated Marketing Department

54.5%

37.5%

37.5%

# of Marketing Staff

3.8

2.9

1.3

Separate/Dedicated Claims Department

75.8%

87.5%

37.5%

# of Claims Staff

2.7

1.9

3.6

TPA Service Staff

Average

+25% Profit

+25% Growth

% of Peer Agencies Having: Workers Comp TPA

* * * * * *

* * * * * *

* * * * * *

# of Service Staff

2013 Best Practices Study

Total TPA Revenues Serviced

Group Benefits TPA

Agencies with Revenues Between $10,000,000 and $25,000,000

# of Service Staff

Total TPA Revenues Serviced

*Insufficient Data

Average # of Licensed Employees:

75.7

(includes sales and service/support staff)

154