2007 Best Practices Study

Agencies with Revenues Between $2,500,000 and $5,000,000

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

60.0%

* * *

50.0%

# of New Producers Hired Last Year

1.3

1.8

Average Annualized Wages per Producer Hired

$55,179

$43,750

*Insufficient Data

Where New Producers Were Found

“Successful” New Producers 57.9%

Outside of Industry 16.7%

Another Insurance

Broker 44.4%

Directly From College or Graduate

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

An Insurance

School 11.1%

Carrier 27.8%

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

“We hire smart people. They have to be willing to learn. They have to be prepared to handle large accounts and to solve our clients’ problems. We do not allow any of them to coast.”

Future Hiring Plans

Average

+25% Profit

+25% Growth

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

66.7%

37.5%

50.0%

Number of Producers to be Hired

1.5

1.3

1.3

79 2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Producer Info