2006 Best Practices Study

AGENCIES WITH REVENUES UNDER $500,000

REVENUE ANALYSIS

2006

A.

% of Revenue by Source

+25% Profit

+25% Growth

Average

Commercial P&C

34.7%

28.2%

42.6%

PROFILE

Personal P&C

53.3%

58.0%

43.3%

P&C Service Fees

0.4%

0.0%

1.5%

Contingent

7.2%

4.9%

7.6%

REVENUES/ EXPENSES

Group L&H

2.1%

4.9%

2.4%

Individual L&H

1.5%

3.0%

1.7%

Investments

0.5%

1.0%

0.8%

FINANCIAL STABILITY

Miscellaneous

0.2%

0.0%

0.2%

Total Revenues

100.0% 100.0% 100.0%

Brokerage Commission Exp

1.4%

0.0%

0.0%

EMPLOYEE OVERVIEW

Net Revenues

98.6% 100.0% 100.0%

70%

Average

60%

+25% Profit

PRODUCER INFO

50%

+25% Growth

40%

30%

SERVICE STAFF INFO

20%

% Total Revenue

10%

Commercial P&C

Personal P&C

P&C Service Fees

Contingent

Group L&H

Individual L&H

Investments

TECHNOLOGY

Future Revenue Sources

% of Agencies Considering Line of Business as Very Important:

INSURANCE CARRIERS

Personal Lines

86.7% 80.0%

Small Commercial Lines Individual Life & Health

0.0% 0.0%

Group Life & Health Surety & Bonding

26.7%

2006 Best Practices Study

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