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

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

46.7%

25.0%

50.0%

36.7%

25.0%

25.0%

$ Amount of Minimum Threshold

$1,398

*

*

*Insufficient Data

Restrictive Covenants

Producer’s Ownership in Their Book

Use of Restrictive Covenants

Have No Producers Except

All Producers Share in Ownership of Books 3.3%

Some Producers Share in Ownership of Books 40.0%

Some Producers Have Signed 0.0%

Agency Owners 3.3%

Have No Producers Except

Agency Owners 10.0%

None Have Signed 6.7%

None Share in Ownership of Books 46.7%

All Producers Have Signed 90.0%

Enforceability of Restrictive Covenants

Increasing 10.0%

Don't Know 16.7%

Remaining the Same 70.0%

Decreasing 3.3%

% of Agencies Requiring CSRs to sign Restrictive Covenants: 63.3%

80 2007 Best Practices Study | Agencies with Revenues Between $2,500,000 and $5,000,000 | Producer Info