2006 Best Practices Study

AGENCIES WITH REVENUES BETWEEN $10,000,000 AND $25,000,000

INSURANCE CARRIERS

2006

A.

Number of P&C Carriers Represented

+25% Profit

+25% Growth

Average

Personal Lines National

9.4

5.9

7.4

PROFILE

Regional

5.1

4.3

6.4

Commercial Lines National

25.7

9.3

19.1

REVENUES/ EXPENSES

Regional

12.3

9.4

14.6

B.

Number of Group Employee Benefits Carriers Represented

+25% Profit

+25% Growth

Average

FINANCIAL STABILITY

Average Total GEB Carriers

35.5

27.6

32.9

Average Number by Product GL&H

13.7

13.8

15.7

LTD

10.0

8.8

9.0

EMPLOYEE OVERVIEW

Dental

9.7

9.0

10.0

Retirement

5.3

6.2

3.3

C.

Commission Income Derived from Top Carriers

PRODUCER INFO

+25% Profit

+25% Growth

Average

% of Net Revenue from Top P&C Carrier

12.7% 16.7% 14.5%

% of Net Revenue from Top 3 P&C Carriers

24.3% 30.2% 26.1%

SERVICE STAFF INFO

% of Net Revenue from Top GL&H Carrier

4.6% 3.0% 5.2%

% of Net Revenue from Top 3 GL&H Carriers

8.4% 6.0% 10.5%

D.

Carrier Service Center Use

TECHNOLOGY

+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

28.9%

*

35.4%

INSURANCE CARRIERS

1.6% 2.9% 1.2%

*Insufficient Data

2006 Best Practices Study

96