2005 Best Practices Study

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

INSURANCE CARRIERS

2005

A.

Number of P&C Carriers Represented

+25% Profit

+25% Growth

Average

Personal Lines National

4.6

3.6

3.8

PROFILE

Regional

4.5

5.8

2.3

Commercial Lines National

6.7

5.8

5.0

REVENUES/ EXPENSES

Regional

8.2

13.6

4.9

B.

Number of Group Employee Benefits Carriers Represented

+25% Profit

+25% Growth

Average

FINANCIAL STABILITY

Average Total GEB Carriers

15.8

13.4

17.5

Average Number by Product GL&H

7.4

5.7

7.9

LTD

4.8

4.8

4.7

EMPLOYEE OVERVIEW

Dental

6.1

4.8

5.3

Retirement

2.9

3.0

3.8

C.

Commission Income Derived from Top Carriers

PRODUCER INFO

+25% Profit

+25% Growth

Average

% of Net Revenue from Top P&C Carrier

18.4% 16.2% 19.4%

SERVICE STAFF INFO

% of Net Revenue from Top 3 P&C Carriers

34.3% 33.3% 36.1%

% of Net Revenue from Top GL&H Carrier

7.5% 10.5% 8.7%

% of Net Revenue from Top 3 GL&H Carriers

11.0% 10.8% 10.3%

TECHNOLOGY

D.

Carrier Service Center Use

+25% Profit

+25% Growth

Average

% of Agency’s Personal Lines Commissions Placed in Service Centers % of Agency’s Commercial Lines Commissions Placed in Service Centers

INSURANCE CARRIERS

26.6%

*

*

6.7% 18.0% 18.0%

*Insufficient Data

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