2013 Best Practices Study

Analysis of Agencies with Revenues Under $1,250,000

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

9.1%

0.0%

0.0%

$500

0.0% 0.0% 0.0%

0.0% 0.0% 0.0%

* *

9.1%

*

*

12.1%

* *

* *

Number of Points Reduced

22

% of Agencies that Raise Reduced Rate Over Time

100%

*

*

*Insufficient Data

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

71.4% 3.6% 10.7% 14.3%

28.6% 0.0% 28.6% 42.9%

62.5% 12.5% 12.5% 12.5%

2013 Best Practices Study

Agencies with Revenues Under $1,250,000

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