2006 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $5,000,000 AND $10,000,000

INSURANCE CARRIERS

2006

A.

Number of P&C Carriers Represented

+25% Profit

+25% Growth

Average

Personal Lines National

6.6

4.1

9.8

PROFILE

Regional

5.4

3.4

4.9

Commercial Lines National

16.6

7.6

24.9

REVENUES/ EXPENSES

Regional

10.3

7.2

8.9

B.

Number of Group Employee Benefits Carriers Represented

+25% Profit

+25% Growth

Average

FINANCIAL STABILITY

Average Total GEB Carriers

26.6

23.4

14.2

Average Number by Product GL&H

12.1

11.8

6.7

LTD

8.2

7.5

6.4

EMPLOYEE OVERVIEW

Dental

7.8

4.8

6.4

Retirement

4.7

5.6

2.0

C.

Commission Income Derived from Top Carriers

PRODUCER INFO

+25% Profit

+25% Growth

Average

% of Net Revenue from Top P&C Carrier

14.8% 16.1% 14.9%

SERVICE STAFF INFO

% of Net Revenue from Top 3 P&C Carriers

29.9% 32.6% 30.1%

% of Net Revenue from Top GL&H Carrier

4.3% 2.6% 5.2%

% of Net Revenue from Top 3 GL&H Carriers

7.7% 4.6% 8.9%

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

22.0% 22.3% 23.1%

4.5% 4.9% 2.1%

2006 Best Practices Study

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