2007 Best Practices Study

Agencies with Revenues Under $1,250,000

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

16.7%

* * *

33.3%

# of New Producers Hired Last Year

1.1

1.2

Average Annualized Wages per Producer Hired

$31,875

$34,167

Where New Producers Were Found

“Successful” New Producers 83.3%

An Insurance Carrier 0.0%

Outside of Industry 16.7%

Another Insurance

Directly From College or Graduate

Broker 66.7%

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

School 16.7%

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

“My son and daughter work in the business with me. They are the only two people under 40 in the agency. We’ve got an aging staff and over the next 6 to 9 years, almost everyone, other than my son and daughter, will retire. That is the reason we hired this young producer, to face that reality head-on. We are looking at him as a bright spot for us going forward.”

Future Hiring Plans

Average

+25% Profit

+25% Growth

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

36.1%

44.4%

22.2%

Number of Producers to be Hired

1.0

1.0

*

*Insufficient Data

21 2007 Best Practices Study | Agencies with Revenues Under $1,250,000 | Producer Info