2013 Best Practices Study

Analysis of Agencies with Revenues Between $1,250,000 and $2,500,000

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

29.4%

50.0%

12.5%

$1,610

$2,375

$500

$150 $500

$250 $500

* *

23.5%

*

*

26.5%

37.5%

37.5%

Number of Points Reduced

15

20

11

% of Agencies that Raise Reduced Rate Over Time

26.5%

0.0%

25.0%

*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

75.8% 9.1% 9.1% 6.1%

75.0% 12.5% 0.0% 12.5%

75.0% 0.0% 12.5% 12.5%

2013 Best Practices Study

Agencies with Revenues Between $1,250,000 and $2,500,000

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