2007 Best Practices Study

Agencies with Revenues Between $5,000,000 and $10,000,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Producer Information

New Producer Hiring

Average

+25% Profit

+25% Growth

% of Agencies that Hired New Producers Last Year

66.7%

87.5%

87.5%

# of New Producers Hired Last Year

2.0

2.0

1.9

Average Annualized Wages per Producer Hired

$52,825

$52,857

$46,857

“We are not good at training employees without insurance experience. For that reason, we focus on experienced people and have to offer them a better value proposition than their current employer.”

“Successful” New Producers 64.2%

Where New Producers Were Found

of producers hired over the last 5 years have met their production goals

Outside of Industry 17.8%

Another Insurance

Broker 40.5%

Directly From College or Graduate

An Insurance

School 12.3%

Carrier 29.5%

“Outside of Industry” includes other sales (technology, golf, pharmaceuticals, food, uniforms), IT consulting, hospitality, fund-raising, banking, manufacturing, telecommunications, environmental, non-profit, and trucking

Future Hiring Plans

Average

+25% Profit

+25% Growth

% of Agencies That Plan to Hire a New Producer During Current Fiscal Year

83.3%

100.0%

87.5%

Number of Producers to be Hired

1.7

1.4

1.6

“We’re committed to hiring two new producers per year. To get the kind of quality we’re looking for, we are typically having to interview as many as 50 people to hire a single producer. It is not easy, but it is critical to our success.”

107 2007 Best Practices Study | Agencies with Revenues Between $5,000,000 and $10,000,000 | Producer Info