2024 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 8.6%

New Business $67,488

Average Book

Commercial P&C

$631,878

Over age 55 43.2%

Age 36-45 29.5%

Personal P&C

$49,353

$252,211

Multi-Line Production Sales Velocity 13.4%

Life/Health/Financial

$35,581

$169,036

Age 46-55 18.8%

$93,859

$733,164

Effective NUPP

Producer Success Rate 48.7%

NUPP 2.3%

Effective NUPP 1.1%

• 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. • This revenue category had the second highest Effective NUPP (1.1%) of all revenue categories. • The $2.5-$5M category continued to increase its investment in unvalidated producers with NUPP rising to 2.3% this year.

Age Banding of Sales Velocity

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.

17.3%

Over age 55

4.2%

Age 46-55

2.6%

Age 36-45

4.8%

Up to age 35

1.8%

Comparison Group Average

Average

Top Quartile

$2.5-5M

28