2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000

SERVICE STAFF INFO

EXECUTIVE PERSPECTIVES

A.

Service Related Personnel

Service Related Personnel are defined in the study as typically non-commissioned employees who have responsibility -- either directly (e.g., Account Executives (AE), Account Managers (AM), Customer Service Representatives (CSRs), Assistant CSRs, etc.) or indirectly (e.g., Claims Specialist, Placer/Marketer, etc.) -- to provide or support the delivery of service to the agency’s clients.

PROFILE

“Our strategy is to over-serve the top 20% of our clients and to focus our new business efforts on adding to the top 20%.”

+25% Profit

+25% Growth

REVENUES/ EXPENSES

Average

Total Number of Service Related Personnel

62.8 68.5 66.4

FINANCIAL STABILITY

Service Structure

+25% Profit

+25% Growth

% of Agencies Having:

Average

Separate/Dedicated Marketing Department Separate/Dedicated Claims Department Assistants for CSRs/Account Managers

65.6% 87.5% 50.0% 90.6% 87.5% 87.5% 78.1% 75.0% 75.0%

EMPLOYEE OVERVIEW

B.

CSR Productivity by Line of Business In the following charts the number of CSRs includes Account Executives (non-producer position) , Senior CSRs, CSRs, Account Managers, Assistant CSRs, etc. (i.e., positions with main responsibility for client service or main responsibility to support the AE, CSR/AM in providing client services). It also includes the department managers who spend a portion of their time servicing clients. Respondents were instructed to use decimals to accurately represent the actual number of full-time equivalent client service positions.

PRODUCER INFO

SERVICE STAFF INFO

How Time Was Spent

Commercial P&C CSRs

Average Top 25%

Selling New Business (New or Acct Rounding) 4.3%

Number

29.7 72.0 11.0

Administration 6.7%

TECHNOLOGY

High Low

Marketing (Placement) 27.2%

Average Commissions Serviced Average Pay ($) Average Pay (as % of Book Serviced)

$352,782 $554,890

INSURANCE CARRIERS

$44,134

Claims Processing 1.7%

Customer Service 60.2%

12.5%

APPENDIX

143