2005 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $1,250,000 AND $2,500,000

INSURANCE CARRIERS

2005

A.

Number of P&C Carriers Represented

+25% Profit

+25% Growth

Average

Personal Lines National

2.4

2.8

2.3

PROFILE

Regional

4.3

2.4

3.9

Commercial Lines National

4.7

9.3

4.8

REVENUES/ EXPENSES

Regional

5.9

5.1

5.9

B.

Number of Group Employee Benefits Carriers Represented

+25% Profit

+25% Growth

Average

FINANCIAL STABILITY

Average Total GEB Carriers

11.3

10.6

12.6

Average Number by Product GL&H

5.3

6.2

5.7

LTD

3.2

2.8

4.3

EMPLOYEE OVERVIEW

Dental

2.8

3.8

3.8

Retirement

4.6

2.4

3.2

C.

Commission Income Derived from Top Carriers

PRODUCER INFO

+25% Profit

+25% Growth

Average

% of Net Revenue from Top P&C Carrier

26.5% 17.0% 24.2%

SERVICE STAFF INFO

% of Net Revenue from Top 3 P&C Carriers

49.0% 36.1% 39.2%

% of Net Revenue from Top GL&H Carrier

5.1% 5.7% 4.5%

% of Net Revenue from Top 3 GL&H Carriers

8.4% 10.5% 8.9%

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

41.6%

*

*

2.3%

*

*

*Insufficient Data

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