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

Carriers

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

7.7 4.8

4.8 3.5 8.3

3.7 4.6 8.3

Regional

Total

12.5

Commercial Lines P&C National

6.8 4.6

2.4 4.7

2.7 3.4

Regional

Total

11.4

7.1

6.1

Group L&H / Financial

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

3.9

2.2

4.2

Average +25% Growth Agency’s Total % of Commission & Fee Revenue Derived from Direct Versus Indirect Appointments INDIRECT Carrier Appointments 9.1% 3.9% 11.8% DIRECT Carrier Appointments 90.9% 96.1% 88.2% 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

*

*

*

18.3%

*

*

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 50.0% * Retention 50.0% 28.6% Profitability 50.0% * Sales 50.0% 28.6%

Agencies with Revenues Under $1,250,000

31

*Insufficient Data