2004 Best Practices Study

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

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

+25% Profit

+25% Growth

"We hire the best people avail- able, then we will do almost any- thing to keep them happy."

REVENUES/ EXPENSES

Average

Total Number of Service Related Personnel

17.3 16.8 14.3

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

59.4% 87.5% 25.0% 53.1% 75.0% 25.0% 65.6% 62.5% 87.5%

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) 7.4%

Number

7.8

Administration 8.6%

TECHNOLOGY

High Low

19.0

Marketing (Placement) 19.9%

2.0

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

$270,100 $448,896

INSURANCE CARRIERS

Claims Processing 3.9%

$40,017

Customer Service 60.2%

14.8%

APPENDIX

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