2005 Best Practices Study

2005 BEST PRACTICES STUDY

INTRODUCTION

For more than a dozen years, the annual Best Practices Study has served as a tool to help agency owners and managers understand how their business operations perform and measure up to the top performing firms across the country. It is a “must have” for those agencies that want to become the best they can be. The 2005 Best Practices Study Executive Update provides critical performance benchmarks in seven agency revenue categories ranging from Under $500,000 to Over $25,000,000 . Agencies can measure, evaluate, and compare results for agency opera- tions including:

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Income & Expense Distribution Revenue & Profitability Growth

Production & Service Staff Compensation/Productivity

Technology Expenses

P&C and GL&H Carrier Representation

Much more

This year’s Executive Update continues to follow the performance of the 195 agencies selected as Best Practices Agencies in 2004. (NOTE: New agencies are selected every third year.) Although it updates all of the important financial and operational benchmarks and can be used on a standalone basis, readers of this update may also want to refer- ence the comprehensive 2004 Best Practices Study for additional information on the 2004 Best Practices Agencies including:

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Factors most critical to success

Top challenges

Keys for maximizing productivity

Keys for gaining a competitive advantage

Additional operational results and business practices

The comprehensive 2004 study is available in hard copy only and can be purchased from the Independent Insurance Agents & Brokers of America (IIABA) Education Department. Order forms can be downloaded at http://bp.reaganconsulting.com/.

About the Study

The History The annual Best Practices Study originated in 1993 as an initiative by the Independent Insurance Agents & Brokers of America (IIABA) to help its members build and maintain the value of their most important assets, their agencies. By studying the leading agen- cies and brokers in the country, the association hoped to provide member agents with meaningful performance benchmarks and business strategies that could be adopted or