2004 Best Practices Study

AGENCIES WITH REVENUES UNDER $500,000

B.

Validated Producer Results 1.

EXECUTIVE PERSPECTIVES

Typical Producer Productivity

Commercial P&C

Group L&H

Personal P&C

Multi- Lines

1.2 2.0 0.3

*

1.4 3.0 0.3

1.9 3.0 0.1

Average

Number of Validated Producers

1.0 0.1

High Low

PROFILE

$17,516

*

$17,727 $23,111

Average

New Commissions Produced Annually

$29,777

*

$30,500 $35,000

Top 25%

REVENUES/ EXPENSES

$93,746

*

$107,532 $170,758

Average

Total Commissions in Producer’s Book

$194,427

*

$195,008 $260,062

Top 25%

Annual Pay per Producer

FINANCIAL STABILITY

$47,857

*

$44,293 $47,833

Annual Pay as % of Producer’s Book

51.0%

*

41.2% 28.0%

EMPLOYEE OVERVIEW

2.

Most Successful Producer Productivity

Commercial P&C

Group L&H

$32,589 $22,167

Average

PRODUCER INFO

New Commissions Produced Annually

$60,165

*

Top 25%

$193,886 $113,161

Average

Total Commissions in Producer’s Book

SERVICE STAFF INFO

$302,500

*

Top 25%

$1,813

$1,950

Average

Average Commissions per Account

$4,350

*

Top 25%

TECHNOLOGY

*Insufficient Data

How Most Successful Producers Spent Time

Commercial P&C Producer

Group L&H Producer

Soliciting New Business 27.7%

Soliciting New Business 47.5%

Management/ Personnel/Agency Administrative 21.3%

INSURANCE CARRIERS

Management/ Personnel/Agency Administrative 7.5%

Personal Training/ Education/

Personal Training/ Education/

Servicing Existing Accounts 44.8%

Servicing Existing Accounts 40.0%

Professional Development 6.2% %

Professional Development 5.0% %

APPENDIX

21