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

Carriers

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

12.5 13.8 26.3

12.0

12.0 13.3 25.3

Regional

*

Total

12.0

Commercial Lines P&C National

52.0 39.6 91.6

35.7

29.0 39.0 68.0

Regional

*

Total

35.7

Group L&H / Financial

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

90.0

44.3

46.0

*Insufficient Data

Average +25% Growth Agency’s Total % of Commission & Fee Revenue Derived from Direct Versus Indirect Appointments INDIRECT Carrier Appointments 20.4% 30.0% 28.6% DIRECT Carrier Appointments 79.6% 70.0% 71.4% 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

25.8%

32.8%

40.0%

4.1%

2.9%

2.1%

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 18.2% * Retention 9.1% 0.0% Profitability 27.3% * Sales 0.0% *

Agencies with Revenues Over $25,000,000

191

*Insufficient Data