2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000

Net Revenue Growth

EXECUTIVE PERSPECTIVES

30%

Average

20%

+25% Profit

PROFILE

+25% Growth

10%

0%

-10%

% Total Revenue

REVENUES/ EXPENSES

-20%

-30%

Commercial P&C

Personal P&C

Group L&H

P&C Service Fees

Individual L&H

Total Commissions & Fees

FINANCIAL STABILITY

F.

Future Revenue Growth Strategies

Study participants were asked to indicate their three most important strategies for enhancing or achieving future revenue growth.

EMPLOYEE OVERVIEW

% of Total Responses* 1 2 3

Access to Better Carriers

6.7% 10.0% 16.7%

PRODUCER INFO

Advertising/Promotions

3.3% 6.7% 6.7%

Agency/Book of Business Acquisitions

6.7%

6.7% 10.0%

SERVICE STAFF INFO

Cross-Selling/Total Account Development

30.0% 10.0% 13.3%

Producer Recruitment/Development

10.0% 30.0% 10.0%

New Business Initiatives - Prog Dev/Niche Marketing

26.7% 3.3% 6.7%

New Business Initiatives - Referrals/Centers of Influence

16.7% 33.3% 20.0%

TECHNOLOGY

New Business Initiatives - Strategic Alliances

6.7% 3.3% 20.0%

Other

0.0% 0.0% 3.3%

INSURANCE CARRIERS

*With:

1 = Critically Important 2 = Very Important 3 = Important

APPENDIX

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