2004 Best Practices Study

AGENCIES WITH REVENUES UNDER $500,000

B1.

% of Revenues Derived from Largest Accounts

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

Largest Commission Account

3.4% 3.7% 3.4%

High

11.0%

PROFILE

Low

1.1%

10 Largest Commission Accounts

11.1% 11.8% 10.7%

High

28.5%

REVENUES/ EXPENSES

Low

2.5%

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

0.0% 0.0% 0.0%

Workers Comp Claims Adjusting/Admin (TPA)

8.3% 33.3% 0.0%

PRODUCER INFO

Group Health Claims Adjusting/Admin (TPA)

0.0% 0.0% 0.0%

Self Insurance Programs

8.3% 0.0% 50.0%

Risk Management Consulting

8.3% 0.0% 0.0%

SERVICE STAFF INFO

Premium Financing

58.3% 33.3% 50.0%

Pension/Profit Sharing (401(k)

41.7% 100.0% 50.0%

Human Resource Consulting

0.0% 0.0% 0.0%

Employee Leasing Products & Services (PEOs)

0.0% 0.0% 0.0%

TECHNOLOGY

Investment Products (Securities, Stocks, etc.)

50.0% 66.7% 0.0%

Other* 8.3% 0.0% 0.0% *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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