2002 Best Practices Study

Analysis of Agencies with Revenues Between $2,500,000 and $5,000,000

CARRIER REPRESENTATION A. Number of Carriers Represented

Average

+25% Profit

+25% Growth

Personal Lines National

6.7 4.2

4.5 3.0

4.8 3.8

Regional

Commercial Lines National

15.9

8.0 5.9

8.4 6.1

Regional

7.9

Total Carriers

34.7

21.4

23.1

B. Commission Income as % of Net Revenue

Average

+25% Profit

+25% Growth

% of Net Rev from Top Carrier % of Net Rev from Top 3 Carriers

14.7% 29.1%

17.7% 34.3%

12.8% 23.1%

C. Service Center Use

Total Pers'l Lines Commissions placed in Carrier Service Center Total Comm'l Lines Commissions placed in Carrier Service Center

9.0%

*

*

2.6%

1.9%

4.6%

*Insufficient Data

73