2025 Best Practices Study

Executive Summary

• Effective NUPP, 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 and is the best overall measure of an agency's effectiveness in recruiting and developing sales talent. • This revenue group posted the highest producer success rate (53.2%) across other revenue groups, increasing from 50.0% in 2024. • Agencies with $25M to $100M in revenue increased their NUPP from last year’s 1.5% to 1.7% in 2025.

Book of Business per Producer (commissions and fees)

Book of Business by Age

Effective NUPP

NUPP 1.7%

New Business

Average Book

Commercial P&C SALES VELOCITY PRODUCTION Personal P&C Life/ Health/ Financial Multi-Line

$178,483

$1,323,220

Producer Success Rate 53.2%

$112,834

$654,026

◼

11.0%

Up to age 35

◼

27.7%

Age 36-45

$201,855

$1,152,832

◼

26.5%

Age 46-55

Effective NUPP 0.9%

◼

34.9%

Over age 55

$102,867

$801,416

Sales Velocity

Notes & Definitions

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.

16.6%

14.3%

◼

Over age 55

4.5%

◼

Age 46-55

3.3%

◼

Age 36-45

4.2%

◼

Up to age 35

2.3%

Average

Top Quartile

$25-100M

46