2024 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 7.4%

New Business $19,966

Average Book

Over age 55 26.9%

Commercial P&C

$253,257

Age 36-45 28.1%

Personal P&C

$33,644

$216,212

Multi-Line Production Sales Velocity 15.1%

Life/Health/Financial

$27,892

$126,799

Age 46-55 37.5%

$38,073

$192,872

Effective NUPP

Producer Success Rate 21.0%

NUPP 1.8%

Effective NUPP 0.4%

• Effective NUPP, which is the product of an agency's investment in unvalidated producers (NUPP) and success rate in hiring producers (Producer Success Rate), is expressed as a percentage of net revenue. It is the best overall measure of an agency's effectiveness in recruiting and developing sales talent. • Firms in this revenue group took a significant step forward in lowering their Weighted Average Producer Age (WAPA) to 49.4 down from 51.1 in 2023. Additionally, Agencies Book of Business from producers aged 36-45 increased by 5% year over year to 28.1%. • This revenue group posted the lowest Effective NUPP of any revenue group after posting the highest NUPP and Effective NUPP in 2023.

Sales Velocity

Age Banding of Sales Velocity

Notes & Definitions

• Sales Velocity is a critical metric in determining organic growth. It is defined as this year's written new business divided by last year's commissions and fees. • Age Banding of Sales Velocity can help a firm assess where new business and growth are coming from and prepare for perpetuation.

16.7%

4.6%

Over age 55

Age 46-55

5.6%

Age 36-45

3.4%

Up to age 35

1.5%

Comparison Group Average

Average

Top Quartile

<$1.25M

20