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

Carriers

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

14.0

16.6

7.1

Regional

9.2

5.4

12.0 19.1

Total

23.2

22.0

Commercial Lines P&C National

34.2 20.7 55.0

13.2 13.3 26.5

19.7 13.4 33.1

Regional

Total

Group L&H / Financial

Total Life, Health, Disability, LTC, Retirement Products, and Other

50.6

47.6

35.0

Average +25% Growth Agency’s Total % of Commission & Fee Revenue Derived from Direct Versus Indirect Appointments INDIRECT Carrier Appointments 20.3% 27.4% 21.8% DIRECT Carrier Appointments 79.7% 72.6% 78.2% Carrier Appointments +25% Profit

Use of Carrier Service Centers

Average

+25% Profit

+25% Growth

Service Center Use Total Personal Lines Commission placed in Carrier Service Center Total Commercial Lines Commission placed in Carrier Service Center

13.0%

18.3%

*

3.6%

7.4%

2.4%

2013 Best Practices Study

Impact of Service Center Use (% of agencies considering the impact to be very positive on the following) Personal Lines Commercial Lines Workflows 14.3%% * Retention 7.1% 18.2% Profitability 14.3% * Sales 0.0% *

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

159

*Insufficient Data