2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $1,250,000 AND $2,500,000

PRODUCER INFORMATION A. New Producer Hiring

EXECUTIVE PERSPECTIVES

+25% Profit

+25% Growth

Average

% of Agencies that Hired a New Producer During Last Fiscal Year

PROFILE

"Our greatest effort this year will be the upgrading of our producer staff."

38.7% 50.0% 62.5%

Number of New Producers Hired

1.4

1.5

1.8

REVENUES/ EXPENSES

Average Annual Compensation Per New Producer

$37,800 $34,500 $36,900

FINANCIAL STABILITY

Where New Producers Were Found

Directly from college or graduate school 20.5%

Outside of Industry* 34.6%

EMPLOYEE OVERVIEW

“Successful” New Producers 71.5% of producers hired over the last 5 years have met their production goals.

An insurance carrier 12.5%

PRODUCER INFO

Another insurance broker 32.3%

SERVICE STAFF INFO

*Other industries mentioned most often include Financial, Stock Brokerage, Manufacturing, Medical/Pharmaceuticals, and Office Equipment/Furniture.

TECHNOLOGY

Future Hiring Plans

+25% Profit

+25% Growth

Average

% of Agencies that Plan to Hire a New Producer During Current Fiscal Year

INSURANCE CARRIERS

74.2% 75.0% 87.5%

Number of New Producers to be Hired

1.2

1.5

1.4

APPENDIX

68