2004 Best Practices Study

AGENCIES WITH REVENUES UNDER $500,000

REVENUE ANALYSIS A.

EXECUTIVE PERSPECTIVES

% of Revenue by Source

+25% Profit 23.2% 68.5%

+25% Growth 34.2% 54.3%

Average

Commercial P&C

37.1% 51.7%

PROFILE

Personal P&C

P&C Service Fees

0.3% 5.4% 2.6% 1.8% 0.3% 0.9%

0.1% 2.7% 4.0% 1.2% 0.0% 0.2%

1.1% 6.1% 0.8% 3.2% 0.1% 0.2%

Contingent Group L&H

REVENUES/ EXPENSES

Individual L&H

Investments

FINANCIAL STABILITY

Miscellaneous

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

2.6%

1.4%

0.6%

EMPLOYEE OVERVIEW

Net Revenues

97.4.%

98.6%

99.4%

70%

Average

60%

+25% Profit

PRODUCER INFO

50%

+25% Growth

40%

30%

SERVICE STAFF INFO

20%

% Total Revenue

10%

Commercial P&C

Personal P&C

P&C Service Fees

Contingent

Group L&H

Individual L&H

Investments

TECHNOLOGY

Future Revenue Sources % of Agencies Considering Line of Business as Very Important: Personal Lines 87.5% Small Commercial Lines 79.2% Individual Life & Health 12.5% Group Life & Health 12.5% Surety/Bonding 8.3%

INSURANCE CARRIERS

APPENDIX

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