2016 BPS Study

Cross Category Comparison Detailed Data for All Revenue Categories

UNVALIDATED PRODUCER METRICS

AGENCIES WITH REVENUES OF:

<$1.25M $1.25‐$2.5M $2.5‐$5M $5‐$10M $10‐$25M >$25M

Metrics are only for firms with at least one unvalidated producer

Average Number of Unvalidated Producers

0.4

0.7

1.0

2.4

4.4

11.3

Average New Commissions Average Book Serviced

$5,550 $8,945 $53,883

$8,726 $17,286 $40,249

$9,835 $28,493 $49,051

$24,099 $53,210 $58,900

$27,704 $63,658 $72,160

$40,729 $93,754 $90,304

Avg Estimated Annual Compensation

Top Quartile Number of Unvalidated Producers

1.3

1.7

3.0

5.3

8.2

24.5

Average New Commissions Average Book Serviced

$20,967 $33,794

$27,907 $57,332

$32,644 $96,982

$50,943 $121,762

$55,126 $124,048

$92,940 $211,063

NUPP: Net Investment in Unvalidated Producer Pay Low

0.0% 1.6% 6.2%

0.0% 1.0% 3.2% 6.1%

0.0% 0.9% 2.6% 3.8%

0.0% 1.2% 3.1% 8.6%

0.0% 1.4% 2.8% 4.2%

0.0% 1.3% 2.8% 4.4%

Average

Top Quartile

High

12.7%

Producer Success Rate

80.7%

74.0%

64.5%

64.1%

60.8%

55.5%

Effective NUPP: Average

1.3% 2.7%

0.7% 2.2%

0.6% 1.5%

0.8% 1.6%

0.9% 1.7%

0.7% 1.6%

Top Quartile

NUPP  (Net Investment in Unvalidated Producer Pay), expressed as a percentage of net revenue, is the difference between what  an agency pays its unvalidated producers and what the producers would earn under the agency’s normal commission schedule.   It is an excellent metric to assess the financial investment an agency is making in its next generation of producer talent.

Effective NUPP

2.7%

2.2%

1.7%

1.6%

1.6%

1.5%

1.3%

0.9%

0.8%

0.7%

0.7%

0.6%

< $1.25M $1.25M‐$2.5M $2.5M‐$5.0M $5.0M‐$10.0M $10.0M‐$25.0M > $25.0M

Average Top Quartile

71