2024 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 10.6%

New Business $131,624

Average Book

Over age 55 33.6%

Commercial P&C

$1,049,816

Personal P&C

$71,811

$470,631

Age 36-45 31.2%

Multi-Line Production Sales Velocity 14.0%

Life/Health/Financial

$146,433

$1,063,875

Age 46-55 24.6%

$91,581

$1,200,197

Effective NUPP

Producer Success Rate 50.4%

NUPP 1.7%

Effective NUPP 0.8%

• 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 category size had the second lowest sales velocity of any size category at 14.0% but improved from 13.1% in 2023. • The firms in this category have the second highest Book of Business percentage of producers under the age of 35 (10.6%) and the second lowest Weighted Average Producer Age (49.1).

Notes & Definitions

Sales Velocity

Age Banding of Sales Velocity

• 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.

17.7%

3.4%

Over age 55

3.1%

Age 46-55

Age 36-45

4.8%

Up to age 35

2.6%

Comparison Group Average

Average

Top Quartile

$10-25M

36