2004 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $2,500,000 AND $5,000,000

Producer Summary

Average Commissions in Book

Average New Commissions Produced

EXECUTIVE PERSPECTIVES

$1,200,000 $1,000,000

$300,000 $250,000 $200,000 $150,000 $100,000 $50,000

$800,000 $600,000 $400,000 $200,000

PROFILE

Commercial P&C

Group L&H

Personal P&C

Multi- Line

Commercial P&C

Group L&H

Personal P&C

Multi- Line

Average Top 25%

Average Top 25%

REVENUES/ EXPENSES

C.

Commission Practices

+25% Profit

+25% Growth

Average

% of agencies paying Personal Lines renewal commissions to Commercial Producers % of agencies with Minimum Threshold for paying Commercial Lines renewal commissions

FINANCIAL STABILITY

41.9%

28.6%

50.0%

40.0%

28.6%

28.6%

EMPLOYEE OVERVIEW

$ Amount of Minimum Threshold

$1,733

*

*

*Insufficient data

D.

Producer’s Ownership in Their Book of Business

PRODUCER INFO

+25% Profit

+25% Growth

Average

All producers share in ownership of books Some producers share in ownership of books

12.9% 0.0% 0.0% 54.8% 57.1% 87.5% 32.3% 42.9% 12.5% 0.0% 0.0% 0.0%

SERVICE STAFF INFO

None share in ownership of books

Have no producers except agency owners

TECHNOLOGY

Use and Enforceability of Restrictive Covenants 81.3% of the respondents in this study group indicated that all produc- ers in their agencies have signed a Restrictive Covenant. 62.5% of this group believes that the enforceability of such agreements remains stable, while 9.4% believe their enforceability is decreasing. Only 9.4% believe they are becoming more enforceable while 18.8% are not sure either way. 56.3% of the respondents also require CSRs to sign Restrictive Covenants.

INSURANCE CARRIERS

APPENDIX

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