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

Carriers

Average +25% Profit +25% Growth

Carrier Representation Personal Lines P&C National

5.1 5.0

3.9 4.3 8.2

5.9 4.6

Regional

Total

10.1

10.4

Commercial Lines P&C National

7.5 7.6

6.0 6.0

10.3

Regional

6.4

Total

15.1

12.0

16.6

Group L&H / Financial

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

9.3

10.4

10.5

Average +25% Growth Agency’s Total % of Commission & Fee Revenue Derived from Direct Versus Indirect Appointments INDIRECT Carrier Appointments 12.6% 11.6% 13.9% DIRECT Carrier Appointments 87.4% 88.4% 86.1% 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

37.5%

*

*

10.7%

*

*

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 14.3% * Retention 14.3% * Profitability 28.6% * Sales 0.0% *

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

63

*Insufficient Data