2004 Best Practices Study

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

Producer Summary

Average Commissions in Book

Average New Commissions Produced

EXECUTIVE PERSPECTIVES

$1,200,000 $1,000,000

$300,000 $250,000 .$200,000 $150,000 $100,000 $50,000

$800,000 $600,000 $400,000 $200,000

PROFILE

Commercial P&C

Group L&H

Personal P&C

Multi- Line

Commercial P&C

Group L&H

Personal P&C

Multi- Line

Average Top 25%

Average Top 25%

REVENUES/ EXPENSES

C.

Commission Practices

+25% Profit

+25% Growth

Average

% of agencies paying Personal Lines renewal commissions to Commercial Producers % of agencies with Minimum Threshold for paying Commercial Lines renewal commissions

FINANCIAL STABILITY

34.5%

28.6%

37.5%

36.7%

25.0%

14.3%

EMPLOYEE OVERVIEW

$ Amount of Minimum Threshold

$1,159

*

*

*Insufficent Data

D.

Producer’s Ownership in Their Book of Business

PRODUCER INFO

+25% Profit

+25% Growth

Average

All producers share in ownership of books Some producers share in ownership of books

6.5% 12.5% 12.5% 35.5% 12.5% 37.5% 58.1% 75.0% 50.0% 0.0% 0.0% 0.0%

SERVICE STAFF INFO

None share in ownership of books

Have no producers except agency owners

TECHNOLOGY

Use and Enforceability of Restrictive Covenants 74.2% of the respondents in this study group indicated that all produc- ers in their agencies have signed a Restrictive Covenant. 80.6% of this group believes that the enforceability of such agreements remains stable, while 12.9% believe their enforceability is decreasing. Only 3.0% of the respondents believe they are becoming more enforceable, while an additional 3.2% are unsure either way. 48.4% of the respon- dents also require CSRs to sign Restrictive Covenants.

INSURANCE CARRIERS

APPENDIX

118