2005 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000

INSURANCE CARRIERS

2005

A.

Number of P&C Carriers Represented

+25% Profit

+25% Growth

Average

Personal Lines National

2.7

2.2

2.3

PROFILE

Regional

4.0

4.7

5.5

Commercial Lines National

3.0

1.7

3.3

REVENUES/ EXPENSES

Regional

4.1

4.3

5.5

B.

Number of Group Employee Benefits Carriers Represented

+25% Profit

+25% Growth

Average

FINANCIAL STABILITY

Average Total GEB Carriers

6.6

9.7

2.5

Average Number by Product GL&H

4.1

6.0

2.7

LTD

2.6

3.0

*

EMPLOYEE OVERVIEW

Dental

2.2

2.5

*

Retirement

2.2

3.0

*

C.

Commission Income Derived from Top Carriers

PRODUCER INFO

+25% Profit

+25% Growth

Average

% of Net Revenue from Top P&C Carrier

33.2% 37.3% 26.8%

SERVICE STAFF INFO

% of Net Revenue from Top 3 P&C Carriers

54.3% 60.6% 48.3%

% of Net Revenue from Top GL&H Carrier

5.5% 4.2% 2.4%

% of Net Revenue from Top 3 GL&H Carriers

7.6% 6.6% 4.0%

TECHNOLOGY

D.

Carrier Service Center Use

+25% Profit

+25% Growth

Average

% of Agency’s Personal Lines Commissions Placed in Service Centers % of Agency’s Commercial Lines Commissions Placed in Service Centers

INSURANCE CARRIERS

*

*

*

9.3%

*

*

*Insufficient Data

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