2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000

B1.

% of Revenues Derived from Largest Accounts

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

Largest Commission Account

3.8% 3.1% 2.7%

High

11.7%

PROFILE

Low

1.4%

10 Largest Commission Accounts

14.2% 14.1% 10.5%

High

39.3%

REVENUES/ EXPENSES

Low

4.3%

B2.

% Providing Other Products and Services

FINANCIAL STABILITY

In addition to traditional P&C and L&H policies and support, Best Practices Agencies are providing their clients numerous other products and services.

+25% Profit

+25% Growth

EMPLOYEE OVERVIEW

Average

Loss Control/Engineering

32.3% 37.5% 12.5%

Workers Comp Claims Adjusting/Admin (TPA)

3.2% 0.0% 0.0%

PRODUCER INFO

Group Health Claims Adjusting/Admin (TPA)

3.2% 0.0% 0.0%

Self Insurance Programs

45.2% 25.0% 25.0%

Risk Management Consulting

45.2% 50.0% 37.5%

SERVICE STAFF INFO

Premium Financing

67.7% 87.5% 75.0%

Pension/Profit Sharing (401(k)

48.4% 50.0% 37.5%

Human Resource Consulting

0.0% 0.0% 0.0%

Employee Leasing Products & Services (PEOs)

16.1% 25.0% 50.0%

TECHNOLOGY

Investment Products (Securities, Stocks, etc.)

32.3% 37.5% 25.0%

Other* 16.1% 0.0% 12.5% *Includes banking, surety, service contracts, MyWave, 125 plan administration, fuel tax calculation and permits for truckers, outsourcing of value added services, actuarial/legal on claims

INSURANCE CARRIERS

APPENDIX

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