2007 Best Practices Study

Agencies with Revenues Between $10,000,000 and $25,000,000

Executive Perspectives

Profile

Revenues/ Expenses

Financial Stability

Employee Overview

Producer Info

Service Staff Info

Technology

Insurance Carriers

Appendix

Commission Practices

Average

+25% Profit

+25% Growth

% of Agencies Paying Personal Lines Renewal Commissions to Commercial Producers (for cross-sell) % of Agencies with Minimum Threshold for Paying Commercial Lines Renewal Commissions

53.3%

50.0%

62.5%

76.7%

62.5%

75.0%

$ Amount of Minimum Threshold

$1,904

$1,210

$1,008

Restrictive Covenants

Producer’s Ownership in Their Book

Use of Restrictive Covenants

Have No Producers Except Agency Owners 0.0%

None Have Signed 0.0%

Some Producers Have

Some Producers Share in Ownership of Books 40.0%

Have No Producers Except Agency Owners 0.0%

Signed 13.3%

None Share in Ownership of Books 50.0%

All Producers Share in Ownership of Books 10.0%

All Producers Have Signed 86.7%

Enforceability of Restrictive Covenants

Don't Know 0.0% Decreasing 0.0%

Increasing 16.7%

Remaining the Same 83.3%

% of Agencies Requiring CSRs to sign Restrictive Covenants: 56.7%

136 2007 Best Practices Study | Agencies with Revenues Between $10,000,000 and $25,000,000 | Producer Info