2006 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $500,000 AND $1,250,000

INSURANCE CARRIERS

2006

A.

Number of P&C Carriers Represented

+25% Profit

+25% Growth

Average

Personal Lines National

2.8

2.5

3.2

PROFILE

Regional

3.8

3.2

3.5

Commercial Lines National

3.1

2.2

3.0

REVENUES/ EXPENSES

Regional

3.5

3.7

2.5

B.

Number of Group Employee Benefits Carriers Represented

+25% Profit

+25% Growth

Average

FINANCIAL STABILITY

Average Total GEB Carriers

6.6

9.8

7.7

Average Number by Product GL&H

3.9

4.4

5.0

LTD

1.9

2.2

2.0

EMPLOYEE OVERVIEW

Dental

2.6

2.3

2.0

Retirement

2.5

3.4

2.5

C.

Commission Income Derived from Top Carriers

PRODUCER INFO

+25% Profit

+25% Growth

Average

% of Net Revenue from Top P&C Carrier

34.1% 35.7% 26.7%

SERVICE STAFF INFO

% of Net Revenue from Top 3 P&C Carriers

54.1% 60.4% 49.4%

% of Net Revenue from Top GL&H Carrier

5.2% 4.2% 4.4%

% of Net Revenue from Top 3 GL&H Carriers

7.4% 5.9% 6.0%

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

*

*

*

4.2%

*

*

*Insufficient Data

2006 Best Practices Study

32