2013 Best Practices Study

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

Commission Practices

Average

+25% Profit

+25% Growth

Agency Practices % of Agencies with Threshold below which New / Renewal Commissions are not paid $ Amount of Commercial P&C Threshold $ Amount of Personal P&C Threshold $ Amount of Group L&H Threshold % of Agencies That Give/Assign Books of Business to New Producers Reduce Commission on Assigned Book

73.1%

66.7%

66.7%

$4,147 $3,400 $4,285

$3,500

$7,000 $5,250 $6,500

$750

$2,833

46.2%

16.7%

50.0%

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

Average

+25% Profit

+25% Growth

Use of Restrictive Covenants

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%

2013 Best Practices Study

Agencies with Revenues Over $25,000,000

183