2006 Best Practices Study

2006 BEST PRACTICES STUDY - APPENDIX

I NSURANCE C ARRIERS

1. Carrier Service Center Use - Carriers with whom agency has the option of placing policies in their service centers (i.e., the carrier will assume the role of providing customer service to the policyholder).

O THER T ERMS

In addition to the average results for each study group, the study provides insights on how the “best of the best” are operating. This table will help you understand the terms used to report this information.

HEADING

REFERS TO

Average

the average results achieved by all the firms in the study group for a par- ticular factor. (Extreme high and low results distorting the average have been excluded.)

High

the highest results achieved in the peer group for a particular factor

Low

the lowest results achieved in the peer group for a particular factor

Top 25%

the average results achieved by the Top 25% of the firms in the group for that particular factor or line item. (The firms comprising this group will be different for each factor or line item.) the average results achieved by the 25% of firms having the greatest pro forma profitability as a percent of net revenues. (The firms comprising this group will be different for each factor or line item.) the average results achieved by the 25% of firms experiencing the greatest growth in net revenues. (The firms comprising this group will be different for each factor or line item.)

+25% Profit

+25% Growth

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