2024 Best Practices Study

Executive Summary

Book of Business per Producer (commissions and fees)

Book of Business by Age

Up to age 35 8.3%

New Business $181,099

Average Book

Over age 55 36.1%

Commercial P&C

$1,405,957

Age 36-45 29.0%

Personal P&C

$98,494

$656,719

Multi-Line Production Sales Velocity 15.0%

Life/Health/Financial

$179,051

$1,211,588

Age 46-55 26.5%

$129,350

$1,224,109

Effective NUPP

Producer Success Rate 50.0%

NUPP 1.6%

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. • Firms with greater than $25M in revenue have the highest average book serviced per producer across all lines of business, Commercial P&C, Personal P&C, Life/Health/Financial, and Multi-line. • This revenue category has the highest percentage of producers over the age of 55 (36.1%) and second highest percentage of new business coming from producers over the age of 55 (4.7%).

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.

17.9%

4.7%

Over age 55

Age 46-55

3.5%

Age 36-45

5.0%

Up to age 35

1.7%

Comparison Group Average

Average

Top Quartile

>$25M

40